Pricing Update: Union Pacific
September 17, 2009
JPMorgan Securities priced its $95 million capital lease deal for Union Pacific Railroad Co. this week, sources said.
The existing NAIC-1 issuer, Union Pacific Rail Trust, got its funds in a single amortizing tranche with a 15-year final maturity (2024) and a 7.75-year average life. The deal priced at 175 basis points over Treasurys, for a 4.83% coupon.
Omaha, Neb.-based Union Pacific has now tapped the private placement market for more than $750 million in funds since 2004. Among the issuer’s recent private transactions was a $116.3 million leveraged lease transaction via Banc of America Securities in March 2008, and $145 million lease-backed deal issued in November 2007, also via BofA.
For more information on Union Pacific or any of its recent private placements please check out the PPL Deal Log and archived stories on www.privateplacementletter.com. --GC
For more information on related topics, visit the following:
