Published on 5/28/2019 in the Prospect News Investment Grade Daily.
New Issue: MasterCard sells $2 billion of notes in two parts on top of guidance
By Cristal Cody
Tupelo, Miss., May 28 – MasterCard Inc. priced $2 billion of notes (A1/A+) in two tranches on top of guidance on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company sold $1 billion of 2.95% 10-year notes at 99.862 to yield 2.966% and a spread of 70 basis points over Treasuries. Initial talk was in the Treasuries plus 90 bps area.
MasterCard priced $1 billion of 3.65% 30-year notes at 99.855 to yield 3.658%, or a Treasuries plus 95 bps spread. The notes were initially talked to price in the Treasuries plus 115 bps area with guidance later tightened to 95 bps.
Bookrunners were Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG, Santander Investment Securities Inc., U.S. Bancorp Investments Inc., BofA Securities, Inc., Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and SG Americas Securities, LLC.
Proceeds will be used for general corporate purposes.
MasterCard is a Purchase, N.Y.-based global payment solutions company.
| Issuer: | MasterCard Inc.
|
| Amount: | $2 billion
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| Description: | Notes
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| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG, Santander Investment Securities Inc., U.S. Bancorp Investments Inc., BofA Securities, Inc., Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and SG Americas Securities, LLC
|
| Senior co-managers: | BB&T Capital Markets, ICBC Standard Bank plc, Lloyds Securities Inc., Loop Capital Markets LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, NatWest Markets Securities Inc. and SunTrust Robinson Humphrey, Inc.
|
| Co-managers: | Academy Securities, Inc., Blaylock Van, LLC, Cabrera Capital Markets, LLC, R. Seelaus & Co., LLC and Stern Brothers & Co.
|
| Trade date: | May 28
|
| Settlement date: | May 31
|
| Ratings: | Moody’s: A1
|
| S&P: A+
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
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| Amount: | $1 billion
|
| Maturity: | June 1, 2029
|
| Coupon: | 2.95%
|
| Price: | 99.862
|
| Yield: | 2.966%
|
| Spread: | Treasuries plus 70 bps
|
| Call features: | Make-whole call before March 1, 2029 at Treasuries plus 10 bps; thereafter at par
|
| Price guidance: | Treasuries plus 70 bps; initial talk at Treasuries plus 90 bps area
|
|
|
| 30-year notes
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| Amount: | $1 billion
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| Maturity: | June 1, 2049
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| Coupon: | 3.65%
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| Price: | 99.855
|
| Yield: | 3.658%
|
| Spread: | Treasuries plus 95 bps
|
| Call features: | Make-whole call before Dec. 1, 2048 at Treasuries plus 15 bps; thereafter at par
|
| Price guidance: | Treasuries plus 95 bps; initial talk at Treasuries plus 115 bps area
|
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