By Cristal Cody
Eureka Springs, Ark., May 2 – Union Pacific Railroad Co. tapped the market on Monday with a $150,733,000 offering of 2.495% series 2016-1 pass-through certificates due Nov. 9, 2029 (Aa2/AA), according to a market source.
The certificates priced with a spread of 63 basis points over Treasuries.
BofA Merrill Lynch, Citigroup Global Markets Inc. and Wells Fargo Securities LLC were the bookrunners.
Proceeds from the deal will be used to purchase equipment trust certificates, which will be issued by the company to finance the acquisition of new locomotives.
Union Pacific Railroad is a subsidiary of Omaha-based rail transport company Union Pacific Corp.
| Issuer: | Union Pacific Railroad Co.
|
| Amount: | $150,733,000
|
| Maturity: | Nov. 9, 2029
|
| Securities: | Pass-through certificates
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., Wells Fargo Securities LLC
|
| Coupon: | 2.495%
|
| Spread: | Treasuries plus 63 bps
|
| Pricing date: | May 2
|
| Ratings: | Moody’s: Aa2
|
| S&P: AA
|
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