By Aleesia Forni
Virginia Beach, Feb. 3 – GATX Corp. priced $650 million of senior notes (Baa2/BBB/) on Tuesday in three parts, according to a market source and an FWP filed with the Securities and Exchange Commission.
There was a $100 million tap of the company’s 2.6% senior notes due March 30, 2020 priced at Treasuries plus 115 basis points.
Pricing was at 100.838 to yield 2.423%.
The notes sold at the tight end of talk.
The original $250 million of 2.6% senior notes (Baa2/BBB/) due March 30, 2020 priced at Treasuries plus 120 basis points on Oct. 28.
There was also $300 million of 3.25% 10-year notes priced at 98.937 to yield 3.374%, or Treasuries plus 160 bps.
The notes sold at the tight end of talk.
Finally, $250 million of 4.5% notes due 2045 priced at 99.728 to yield 4.516%, or Treasuries plus 215 bps.
The 30-year issue was added prior to the deal’s launch.
BofA Merrill Lynch and Citigroup Global Markets Inc. were the bookrunners.
Proceeds will be used to repay the $100 million outstanding of the company’s 5.7% notes due April 15, 2015, to repay its $250 million of 4.75% notes due May 15, 2015 and for general corporate purposes, including working capital and capital expenditures.
The transportation leasing service company is based in Chicago.
| Issuer: | GATX Corp.
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| Issue: | Senior notes
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| Amount: | $650 million
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| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc.
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| Senior co-managers: | Morgan Stanley & Co. LLC, Mizuho Securities USA Inc., U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC
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| Co-managers: | BMO Capital Markets Corp., KeyBanc Capital Markets Inc., Loop Capital Markets LLC, PNC Capital Markets LLC, Williams Capital Group, LP, BNY Mellon Capital Markets, LLC
|
| Trade date: | Feb. 3
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| Settlement date: | Feb. 6
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| Ratings: | Moody’s: Baa2
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| Standard & Poor’s: BBB
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| Distribution: | SEC-registered
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|
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| Tap of notes due 2020
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| Amount: | $100 million
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| Maturity: | March 30, 2020
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| Coupon: | 2.6%
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| Price: | 100.838
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| Yield: | 2.423%
|
| Spread: | Treasuries plus 115 bps
|
| Price talk: | 120 bps area, tightened from 135 bps area
|
| Make-whole call: | Treasuries plus 20 bps prior to Feb. 29, 2020, then callable at par
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| Notes due 2025
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| Amount: | $300 million
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| Maturity: | March 30, 2025
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| Coupon: | 3.25%
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| Price: | 98.937
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| Yield: | 3.374%
|
| Spread: | Treasuries plus 160 bps
|
| Price talk: | 165 bps area, tightened from 175 bps area
|
| Make-whole call: | Treasuries plus 25 bps prior to Dec. 30, 2024, then callable at par
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| Notes due 2045
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| Amount: | $250 million
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| Maturity: | March 30, 2045
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| Coupon: | 4.5%
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| Price: | 99.728
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| Yield: | 4.516%
|
| Spread: | Treasuries plus 215 bps
|
| Make-whole call: | Treasuries plus 35 bps prior to Sept. 30, 2044, then callable at par
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