Published on 5/3/2018 in the Prospect News Investment Grade Daily.
New Issue: GATX sells $300 million 4.55% notes due 2028 with 160 bps spread
By Cristal Cody
Tupelo, Miss., May 3 – GATX Corp. sold $300 million of 4.55% long 10-year senior notes (Baa2/BBB) on Thursday at par to yield 160 basis points over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes priced on the tight side of deal guidance in the Treasuries plus 160 bps to 165 bps area.
Citigroup Global Markets Inc., BofA Merrill Lynch and Morgan Stanley & Co. LLC were the bookrunners.
Proceeds will be used to repay $250 million of the company’s outstanding 2.375% senior notes due July 30, 2018 and for general corporate purposes.
GATX is a transportation leasing company based in Chicago.
Issuer: | GATX Corp.
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Amount: | $300 million
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Description: | Senior notes
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Maturity: | Nov. 7, 2028
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Bookrunners: | Citigroup Global Markets Inc., BofA Merrill Lynch and Morgan Stanley & Co. LLC
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Senior co-managers: | Mizuho Securities USA LLC and U.S. Bancorp Investments, Inc.
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Co-managers: | BMO Capital Markets Corp., BNY Mellon Capital Markets, LLC, KeyBanc Capital Markets Inc., Loop Capital Markets LLC, MUFG, PNC Capital Markets LLC and Williams Capital Group, LP
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Coupon: | 4.55%
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Price: | Par
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Yield: | 4.55%
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Spread: | Treasuries plus 160 bps
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Call feature: | Make-whole call before Aug. 7, 2028 at greater of par or Treasuries plus 25 bps; thereafter at par
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Trade date: | May 3
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Settlement date: | May 7
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Ratings: | Moody’s: Baa2
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| S&P: BBB
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Distribution: | SEC registered
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Price talk: | Treasuries plus 160 bps-165 bps area
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