By Cristal Cody
Tupelo, Miss., Oct. 29 – Charles Schwab Corp. priced $1.1 billion of senior notes (A2/A/A) in two tranches on the tight side of guidance on Monday, according to a market source.
The $500 million of 3.55% notes due Feb. 1, 2024 priced at a Treasuries plus 67 basis points spread.
A $600 million tranche of 4% notes due Feb. 1, 2029 priced with a 97 bps spread over Treasuries.
BofA Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.
Proceeds will be used for general corporate purposes, including repurchasing common stock.
Charles Schwab is a San Francisco-based company that provides wealth management, securities brokerage, banking, asset management, custody and financial advisory services.
| Issuer: | Charles Schwab Corp.
|
| Amount: | $1.1 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
|
| Trade date: | Oct. 29
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | Feb. 1, 2024
|
| Coupon: | 3.55%
|
| Spread: | Treasuries plus 67 bps
|
| Price guidance: | Treasuries plus 70 bps area, plus or minus 3 bps; initial talk at Treasuries plus 80 bps to 85 bps area
|
|
|
| 10-year notes
|
| Amount: | $600 million
|
| Maturity: | Feb. 1, 2029
|
| Coupon: | 4%
|
| Spread: | Treasuries plus 97 bps
|
| Price guidance: | Treasuries plus 100 bps area, plus or minus 3 bps; initial talk at Treasuries plus 110 bps area
|
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