Union Pacific Back For $95 Million Lease-Backed Deal
September 11, 2009
Repeat private placement issuer Union Pacific Railroad Co. is back in the market for $95 million in lease backed notes, sources said. The company has tapped the private market at least eight times since 2004.
The company is an existing NAIC-1 issuer and the current deal is led by JPMorgan Securities. The deal is structured in a single amortizing tranche with a 15-year final, 7.6-year average life maturity. Bids are due on Sept. 15.
Among the Omaha, Neb.-based railroad company's recent private transactions is a $116.3 million leveraged lease transaction via Banc of America Securities in March 2008. That deal was split into 3.9- and 3.2-year average life tranches that priced at 4.40% and 4.20% coupons, respectively.
Going back to November 2007, Union Pacific got $145 million in private funds in an 8.5-year final, 3.8-year average life tranche that priced at a coupon of 4.91%. That deal was also done via BofAS. Prior to those deals, the company has tapped the private market for more than $400 going back to 2004.--GC
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