HG bonds: Mastercard prices new 10-year notes; terms

Mastercard Inc. today completed a $750 million offering of 2% 10-year senior notes at T+43, or 27 basis points through early whispers.

The transaction processing concern will use the proceeds for general corporate purposes, according to regulatory filings. Of note, it redeemed $650 million of its existing 2.00% notes due 2021. In 2022, it faces the maturity of the equivalent of about $815 million of its 1.10% euro-denominated notes, which date to issuance in December 2015.

In early March, Mastercard completed a $1.3 billion public offering of senior notes, across 1.90% 10-year notes due March 15, 2031, and 2.95% 30-year bonds due March 15, 2051. It designated the 10-year issue as a sustainability bond, to support its green and social projects. Proceeds of the long bonds backed general corporate purposes.

The 1.90% 2031 issue changed hands on Friday at T+32, while the 2.95% 2051 bonds traded in recent sessions in the low-to-mid T+70s, trade data show.

The A+/A1 ratings profile reflects stable outlooks on both sides.

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