By Andrea Heisinger
New York, Aug. 4 - Union Pacific Corp. priced an upsized $500 million of 4.75% 30-year bonds on Thursday to yield 110 basis points over Treasuries, said a source who worked on the trade.
The deal was increased in size from $350 million. The notes were priced below initial guidance in the 115 bps to 120 bps range and in line with revised talk of 110 bps, a source said.
The bonds (Baa2/BBB+/) were priced at 98.031 to yield 4.875%.
The securities have a make-whole call at Treasuries plus 20 bps and feature a change-of-control put at 101%.
Bookrunners were Bank of America Merrill Lynch, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC.
BNP Paribas Securities Corp., Mitsubishi UFJ Securities International plc, RBS Securities Inc., SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC were the senior co-managers.
Co-managers were Barclays Capital Inc., BNY Mellon Capital Markets LLC, Credit Suisse Securities (USA) LLC, Morgan Stanley & Co., Inc. and U.S. Bancorp Investments Inc.
Proceeds will be used for general corporate purposes, including the repurchase of common stock through a share repurchase program.
Union Pacific last priced bonds in a $500 million sale of 10-year paper on July 28, 2010.
The railroad transportation company is based in Omaha.
| Issuer: | Union Pacific Corp.
|
| Issue: | Notes
|
| Amount: | $500 million, increased from $350 million
|
| Maturity: | Sept. 15, 2041
|
| Bookrunners: | Bank of America Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC
|
| Senior co-managers: | BNP Paribas Securities Corp., Mitsubishi UFJ Securities International plc, RBS Securities Inc., SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC
|
| Co-managers: | Barclays Capital Inc., BNY Mellon Capital Markets LLC, Credit Suisse Securities (USA) LLC, Morgan Stanley & Co., Inc., U.S. Bancorp Investments Inc.
|
| Coupon: | 4.75%
|
| Price: | 98.031
|
| Yield: | 4.875%
|
| Spread: | Treasuries plus 110 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Change-of-control put: | 101%
|
| Trade date: | Aug. 4
|
| Settlement date: | Aug. 9
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB+
|
| Price talk: | 115-120 (initial), 110 bps (revised)
|
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