By Cristal Cody
Tupelo, Miss., Feb. 11 – Union Pacific Corp. sold $3 billion of fixed-rate senior notes (A3/A-) in four tranches on the tight side of guidance on Monday, according to a market source.
A $500 million tranche of 2.95% three-year notes priced at a spread of 50 basis points over Treasuries.
Union Pacific sold $500 million of 3.15% five-year notes with a spread of Treasuries plus 70 bps.
A $1 billion tranche of 3.7% 10-year notes priced at a Treasuries plus 105 bps spread.
Also, a $1 billion tranche of 4.3% 30-year notes priced with a 135 bps over Treasuries spread.
Barclays, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.
The Omaha-based railroad transportation company plans to use the proceeds for general corporate purposes, including stock repurchases.
| Issuer: | Union Pacific Corp.
|
| Amount: | $3 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
|
| Trade date: | Feb. 11
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $500 million
|
| Maturity: | March 1, 2022
|
| Coupon: | 2.95%
|
| Spread: | Treasuries plus 50 bps
|
| Price guidance: | Treasuries plus 55 bps area, plus or minus 5 bps; initial price talk at Treasuries plus 70 bps-75 bps area
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | March 1, 2024
|
| Coupon: | 3.15%
|
| Spread: | Treasuries plus 70 bps
|
| Price guidance: | Treasuries plus 75 bps area, plus or minus 5 bps; initial price talk at Treasuries plus 90 bps-95 bps area
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | March 1, 2029
|
| Coupon: | 3.7%
|
| Spread: | Treasuries plus 105 bps
|
| Price guidance: | Treasuries plus 110 bps area, plus or minus 5 bps; initial price talk at Treasuries plus 125 bps-130 bps area
|
|
|
| 30-year notes
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| Amount: | $1 billion
|
| Maturity: | March 1, 2049
|
| Coupon: | 4.3%
|
| Spread: | Treasuries plus 135 bps
|
| Price guidance: | Treasuries plus 140 bps area, plus or minus 5 bps; initial price talk at Treasuries plus 155 bps-160 bps area
|
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