By William Gullotti and Cristal Cody
Buffalo, N.Y., July 20 – U.S. Bancorp priced two tranches of fixed-to-floating rate notes totaling $3.05 billion (expected ratings: A2/A/A/DBRS: AA(low)) at par on Tuesday, according to two 424B2 filings and two FWP filings with the Securities and Exchange Commission with additional information from a market source.
U.S. Bancorp priced $1.75 billion of 4.548% six-year notes at par at Treasuries plus 140 basis points. Initial talk was in the 165 bps area.
Interest will reset to SOFR plus 166 bps on July 22, 2027. The notes will be callable in whole, but not in part, on the interest reset date. The notes will also be callable, in whole or in part, at any time at par plus interest starting June 22, 2028.
The bank also priced $1.3 billion of 4.967% 11-year notes at par for a spread of 195 bps over Treasuries. Initial talk was in the 225 bps area.
Interest on the second series will reset to SOFR plus 211 bps on July 22, 2032. The notes will be callable in whole, but not in part, on the interest reset date. The notes will also be callable, in whole or in part, at any time at par plus interest starting April 22, 2023.
U.S. Bancorp Investments Inc., Goldman Sachs & Co. LLC and Barclays are the bookrunners.
Minneapolis-based U.S. Bancorp is a holding company and parent of U.S. Bank NA.
| Issuer: | U.S. Bancorp
|
| Amount: | $3.05 billion
|
| Issue: | Fixed-to-floating rate notes
|
| Bookrunners: | U.S. Bancorp Investments Inc., Barclays and Goldman Sachs & Co. LLC
|
| Co-managers: | Blaylock Van, LLC and Drexel Hamilton, LLC
|
| Counsel to issuer: | Mayer Brown LLP
|
| Pricing date: | July 19
|
| Settlement date: | July 22
|
| Expected ratings: | Moody’s: A2
|
| S&P: A
|
| Fitch: A
|
| DBRS: AA (low)
|
|
|
| 2028 notes
|
| Amount: | $1.75 billion
|
| Maturity: | July 22, 2028
|
| Coupon: | 4.548%; resets to SOFR plus 166 bps on July 22, 2027
|
| Price: | Par
|
| Yield: | 4.548%
|
| Spread: | Treasuries plus 140 bps
|
| Call: | In whole, but not in part, at par plus interest on the interest reset date; in whole or in part at par plus interest starting June 2028
|
| Price talk: | Treasuries plus 165 bps area
|
| Cusip: | 91159HJF8
|
|
|
| 2033 notes
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| Amount: | $1.3 billion
|
| Maturity: | July 22, 2033
|
| Coupon: | 4.967%; resets to SOFR plus 211 bps on July 22, 2032
|
| Price: | Par
|
| Yield: | 4.967%
|
| Spread: | Treasuries plus 195 bps
|
| Call: | In whole, but not in part, at par plus interest on the interest reset date; in whole or in part at par plus interest starting April 22, 2033
|
| Price talk: | Treasuries plus 225 bps area
|
| Cusip: | 91159HJG6
|
|
|
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