By Rebecca Melvin
New York, March 22 – Baidu Inc. priced $1.5 billion in two tranches of notes due in five and 10 years (expected ratings: A3//A), according to a filing with the Securities and Exchange Commission.
The $1 billion of 3 7/8% notes due Sept. 29, 2023 priced at 99.902 to yield 3.895%, or Treasuries plus 125 basis points. The bonds have a make-whole call at Treasuries plus 20 bps and are callable at par from Aug. 29, 2023.
The $500 million of 4 3/8% 10-year notes priced at 99.432 to yield 4.446%, or Treasuries plus 160 bps. The notes have a make-whole call at Treasuries plus 25 bps and are then callable from Dec. 27, 2027.
Goldman Sachs (Asia) LLC, JPMorgan and BofA Merrill Lynch are joint bookrunners for the SEC-registered deal.
Proceeds from the notes will go toward repaying existing debt and for general corporate purposes.
Baidu is a Beijing-based web services company.
| Issuer: | Baidu Inc.
|
| Amount: | $1.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | Goldman Sachs (Asia) LLC, J.P. Morgan Securities LLC and BofA Merrill Lynch
|
| Trade date: | March 22
|
| Settlement date: | March 29
|
| Expected ratings: | Moody’s: A3
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| 2023 notes
|
| Amount: | $1 billion
|
| Maturity: | Sept. 29, 2023
|
| Coupon: | 3 7/8%
|
| Price: | 99.902
|
| Yield: | 3.895%
|
| Spread: | Treasuries plus 125 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps prior to Aug. 29, 2023
|
|
|
| 2028 notes
|
| Amount: | $500 million
|
| Maturity: | March 29, 3028
|
| Coupon: | 4 3/8%
|
| Price: | 99.432
|
| Yield: | 4.446%
|
| Spread: | Treasuries plus 160 bps
|
| Call: | Make-whole call at Treasuries plus 25 bps prior to Dec. 27, 2027
|
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