Published on 3/28/2017 in the Prospect News Investment Grade Daily.
New Issue: United Parcel Service sells $142.1 million 50-year floaters at Libor minus 30 bps
By Cristal Cody
Tupelo, Miss., March 28 – United Parcel Service, Inc. priced $142,115,000 of floating-rate senior notes due March 15, 2067 (A1/A+) on Tuesday at par to yield Libor minus 30 basis points, according to an FWP filing with the Securities and Exchange Commission.
UBS Securities LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.
The notes are callable at premiums ranging from 105.00 to par beginning on March 15, 2047.
The notes are putable on semiannual dates between March 15, 2018 and March 15, 2028 at prices ranging from 98.00 to 99.00 and then every two years until March 15, 2046 at par.
Proceeds from the deal will be used for general corporate purposes.
The package delivery and supply chain management company is based in Atlanta.
| Issuer: | United Parcel Service, Inc.
|
| Amount: | $142,115,000
|
| Description: | Floating-rate senior notes
|
| Maturity: | March 15, 2067
|
| Bookrunners: | UBS Securities LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
|
| Coupon: | Libor minus 30 bps
|
| Price: | Par
|
| Yield: | Libor minus 30 bps
|
| Call feature: | Anytime beginning March 15, 2047 at 105, with the price descending annually beginning each March 15 by 50 bps until March 15, 2057, when the price thereafter is par until maturity
|
| Put option: | On March 15 and Sept. 15 of each year, beginning March 15, 2018 at 98; rate increases to 99 on put date beginning March 15, 2023 and to par beginning March 15, 2028 and every two years thereafter
|
| Trade date: | March 28
|
| Settlement date: | March 31
|
| Ratings: | Moody’s: A1
|
| S&P: A+
|
| Distribution: | SEC registered
|
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