By Rebecca Melvin and Cristal Cody
Columbus, Ohio, May 12 – Charles Schwab Corp. priced $2.25 billion of notes in three tranches on Tuesday, including fixed-rate tranches due in 2026 and 2031 and a series of floating-rate senior notes due 2026 (expected ratings: A2/A/A), according to a market source and additional details provided Wednesday in an FWP filing with the Securities and Exchange Commission.
The company priced $500 million of floaters due May 13, 2026 at par with a coupon of SOFR plus 52 basis points.
A $1 billion tranche of 1.15% notes due May 13, 2026 priced at 99.768 to yield 1.198%, or Treasuries plus 40 bps. The spread compared to talk in the Treasuries plus 55 bps area.
A $750 million tranche of 2.3% notes due May 13, 2031 priced at 99.805 to yield 2.322%, or Treasuries plus 70 bps, compared to talk in the Treasuries plus 90 bps area.
The fixed-rate tranches have make-whole calls, and all tranches are callable at par either one month or three months before maturity.
BofA Securities, Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are the joint bookrunners.
Proceeds will be used for general corporate purposes.
Charles Schwab is a San Francisco-based financial services company.
| Issuer: | Charles Schwab Corp.
|
| Issue: | Fixed-, floating-rate notes
|
| Amount: | $2.25 billion
|
| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC
|
| Senior co-manager: | Goldman Sachs & Co. LLC
|
| Co-managers: | Barclays, BNY Mellon Capital Markets LLC, HSBC Securities (USA) Inc., TD Securities (USA) LLC and U.S. Bancorp Investments Inc.
|
| Pricing date: | May 11
|
| Settlement date: | May 13
|
| Expected ratings: | Moody’s: A2
|
| S&P: A
|
| Fitch: A
|
|
|
| Floaters
|
| Amount: | $500 million
|
| Maturity: | May 13, 2026
|
| Coupon: | SOFR plus 52 bps
|
| Price: | Par
|
| Yield: | SOFR plus 52 bps
|
| Calls: | On or after April 13, 2026, at par plus interest
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | May 13, 2026
|
| Coupon: | 1.15%
|
| Price: | 99.768
|
| Yield: | 1.198%
|
| Spread: | Treasuries plus 40 bps
|
| Calls: | Make-whole call with 7.5 bps premium and on or after April 13, 2026, at par plus interest
|
| Talk: | Treasuries plus 55 bps area
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | May 13, 2031
|
| Coupon: | 2.3%
|
| Price: | 99.805
|
| Yield: | 2.322%
|
| Spread: | Treasuries plus 70 bps
|
| Calls: | Make-whole call with 12.5 bps premium, and on or after Feb. 13, 2031, at par plus interest
|
| Talk: | Treasuries plus 90 bps area
|
|
|
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