Published on 3/25/2020 in the Prospect News Investment Grade Daily.
New Issue: MasterCard details $4 billion of fixed-rate notes in three tranches
By Devika Patel
Knoxville, Tenn., March 25 – MasterCard Inc. offered further details about a $4 billion sale of notes (A1/A+) that priced in three tranches on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The company sold $1 billion of 3.3% seven-year notes at a spread of 260 basis points over Treasuries. These notes priced at 99.721 to yield 3.345%. Initial talk was in the Treasuries plus 300 bps area.
A $1.5 billion tranche of 3.35% 10-year notes priced at a Treasuries plus 255 bps spread. These notes priced at 99.806 to yield 3.373%. The notes were initially talked to price in the Treasuries plus 300 bps area.
Also, $1.5 billion of 3.85% 30-year notes priced with a spread of 250 bps over Treasuries, tighter than talk in the 300 bps area. These notes priced at 99.576 to yield 3.874%.
Citigroup Global Markets Inc., Barclays, BofA Securities, Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., MUFG, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, NatWest Markets Securities Inc., SG Americas Securities, LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC were the bookrunners.
Proceeds will be used for general corporate purposes.
MasterCard is a Purchase, N.Y.-based global payment solutions company.
| Issuer: | MasterCard Inc.
|
| Amount: | $4 billion
|
| Description: | Notes
|
| Bookrunners: | Citigroup Global Markets Inc., Barclays, BofA Securities, Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., MUFG, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, NatWest Markets Securities Inc., SG Americas Securities, LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
|
| Senior co-managers: | Commerzbank Capital Markets Corp., ICBC Standard Bank plc, Lloyds Securities Inc., Loop Capital Markets LLC, Mizuho Securities USA Inc., PNC Capital Markets LLC and Santander Investment Securities Inc.
|
| Co-managers: | CastleOak Securities LP, Great Pacific Securities, Mischler Financial Group, Inc. and Stern Brothers & Co.
|
| Trade date: | March 24
|
| Settlement date: | March 26
|
| Ratings: | Moody’s: A1
|
| S&P: A+
|
| Distribution: | SEC registered
|
|
|
| Seven-year notes
|
| Amount: | $1 billion
|
| Maturity: | March 26, 2027
|
| Coupon: | 3.3%
|
| Price: | 99.721
|
| Yield: | 3.345%
|
| Spread: | Treasuries plus 260 bps
|
| Call: | Make-whole call at Treasuries plus 40 bps until Jan. 26, 2027, then a par call
|
| Price guidance: | Treasuries plus 300 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | March 26, 2030
|
| Coupon: | 3.35%
|
| Price: | 99.806
|
| Yield: | 3.373%
|
| Spread: | Treasuries plus 255 bps
|
| Call: | Make-whole call at Treasuries plus 40 bps until Dec. 26, 2029, then a par call
|
| Price guidance: | Treasuries plus 300 bps area
|
|
|
| 30-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | March 26, 2050
|
| Coupon: | 3.85%
|
| Price: | 99.576
|
| Yield: | 3.874%
|
| Spread: | Treasuries plus 250 bps
|
| Call: | Make-whole call at Treasuries plus 40 bps until Sept. 26, 2049, then a par call
|
| Price guidance: | Treasuries plus 300 bps area
|
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