Pitney Bowes sets Wednesday investor call for $800 million two-part notes offer

By Paul A. Harris

Portland, Ore., March 9 – Pitney Bowes Inc. plans to sell $800 million of guaranteed senior notes (expected rating B1/BB) in two tranches, according to market sources.

The deal, which is set to be rolled out in front of investors on a conference call starting at 10 a.m. ET on Wednesday, is coming in tranches of six-year notes with initial guidance in the mid-to-high 6% area, and eight-year notes initially guided to come 37.5 basis points behind the six-year notes.

Tranche sizes remain to be determined.

Pricing is expected Friday.

Citigroup Global Markets Inc. is the lead bookrunner. J.P. Morgan Securities LLC, MUFG, Truist, Goldman Sachs & Co. LLC and Citizens Capital Markets Inc. are the joint bookrunners.

RBC Capital Markets Corp. and Siebert Williams Shank are the co-managers.

The Rule 144A and Regulation S for life notes are fully and unconditionally guaranteed by Pitney Bowes Inc. and other domestic subsidiaries.

The expected S&P Global Ratings BB rating of the proposed guaranteed notes comes one notch higher than that of the existing senior notes (BB-), which are not guaranteed.

The notes in both tranches become callable after three years at par plus 50% of the coupon.

The Stamford, Conn.-based technology company plans to use the proceeds to partially pay down its existing term loan B, and to fund a tender offer for its 3 7/8% notes due 2022, its 4.7% notes due 2023 and its 4 5/8% notes due 2024.

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