By Andrea Heisinger
New York, Oct. 28 - US Bancorp and U.S. Bank NA priced an upsized $1.5 billion of notes in two parts on Thursday, a source close to the sale said.
The size was increased from an initial $1 billion, split evenly between the two notes. The two-year floating-rate note amount was doubled in size.
US Bancorp sold $500 million of 1.125% three-year notes (Aa3/A+/AA-) at 99.853 to yield 1.175% with a spread of Treasuries plus 63 basis points. The notes priced at the tight end of guidance in the 65 bps area, a source said.
U.S. Bank sold an upsized $1 billion two-year floating-rate notes (Aa1/AA-) at par to yield three-month Libor plus 22 bps. The floaters were sold in line with guidance in the Libor plus 22 bps area.
Both tranches are non-callable.
Bookrunners were Goldman Sachs & Co., Morgan Stanley & Co. Inc. and US Bancorp Investments.
The financial services company is based in Minneapolis.
| Issuers: | US Bancorp, U.S. Bank NA
|
| Issue: | Notes
|
| Amount: | $1.5 billion, increased from $1 billion
|
| Bookrunners: | Goldman Sachs & Co., Morgan Stanley & Co. Inc., US Bancorp Investments
|
| Trade date: | Oct. 28
|
| Settlement date: | Nov. 2
|
|
|
| Three-year notes
|
| Issuer: | US Bancorp
|
| Amount: | $500 million
|
| Maturity: | Oct. 30, 2013
|
| Coupon: | 1.125%
|
| Price: | 99.853
|
| Yield: | 1.175%
|
| Spread: | Treasuries plus 63 bps
|
| Call: | Non-callable
|
| Price talk: | 65 bps area
|
| Ratings: | Moody's: Aa3
|
| Standard & Poor's: A+
|
| Fitch: AA-
|
|
|
| Two-year floaters
|
| Issuer: | U.S. Bank NA
|
| Amount: | $1 billion
|
| Maturity: | Oct. 26, 2012
|
| Coupon: | Three-month Libor plus 22 bps
|
| Price: | Par
|
| Yield: | Three-month Libor plus 22 bps
|
| Call: | Non-callable
|
| Price talk: | Libor plus 22 bps area
|
| Ratings: | Moody's: Aa1
|
| Standard & Poor's: AA-
|
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