By Andrea Heisinger
Omaha, Jan. 10 - United Parcel Service, Inc. priced $4 billion of notes (Aa2/AA-) in three tranches Thursday, an informed source said.
A $1.75 billion tranche of 4.5% five-year notes priced at 99.575 to yield 4.596%, or Treasuries plus 145 basis points. The tranche has a make-whole call at Treasuries plus 20 bps.
A $750 million tranche of 5.5% 10-year notes priced at 99.802 to yield 5.526%, or Treasuries plus 165 bps. The tranche has a make-whole call at Treasuries plus 25 bps.
A $1.5 billion tranche of 6.2% 30-year notes priced at 99.487 to yield 6.238%, or Treasuries plus 180 bps. The tranche has a make-whole call at Treasuries plus 30 bps.
All of the tranches priced at the tight end of talk, which was 145 to 150 bps for the five-year notes, the 165 bps area for the 10-year notes and 180 to 185 bps for the 30-year notes.
Bookrunners were Goldman Sachs & Co., Morgan Stanley & Co. Inc. and Citigroup Global Markets Inc. Merrill Lynch, Pierce, Fenner & Smith Inc. was bookrunner for the five- and 10-year tranches only.
Proceeds will be used to repay a portion of outstanding commercial paper issued in connection with the Dec. 26 payment to central states, southeast and southwest areas pension fund.
The parcel delivery company is based in Atlanta.
| Issuer: | United Parcel Service, Inc.
|
| Issue: | Notes
|
| Amount: | $4 billion
|
| Bookrunners: | Goldman Sachs & Co., Citigroup Global Markets Inc., Morgan Stanley & Co., with Merrill Lynch, Pierce, Fenner & Smith Inc. on the five- and 10-year tranches
|
| Trade date: | Jan. 10
|
| Settlement date: | Jan. 15
|
| Ratings: | Moody's: Aa2
|
| Standard & Poor's: AA-
|
|
|
| Five-year tranche
|
| Amount: | $1.75 billion
|
| Maturity: | Jan. 15, 2013
|
| Coupon: | 4.5%
|
| Price: | 99.575
|
| Yield: | 4.596%
|
| Spread: | Treasuries plus 145 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Price talk: | 145 to 150 bps
|
|
|
| 10-year tranche
|
| Amount: | $750 million
|
| Maturity: | Jan. 15, 2018
|
| Coupon: | 5.5%
|
| Price: | 99.802
|
| Yield: | 5.526%
|
| Spread: | Treasuries plus 165 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 165 bps area
|
|
|
| 30-year tranche
|
| Amount: | $1.5 billion
|
| Maturity: | Jan. 15, 2038
|
| Coupon: | 6.2%
|
| Price: | 99.487
|
| Yield: | 6.238%
|
| Spread: | Treasuries plus 180 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Price talk: | 180 to 185 bps
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
