Jane Street sets price talk for $500M offering of 8-year secured notes

Price talk is set in the 4.75% area for Jane Street Group LLC’s $500 million offering of eight-year (non-call three) senior secured notes, according to market sources. Final terms for the deal, which is the company's high-yield bond market debut, are expected this afternoon via joint bookrunners J.P. Morgan, Barclays, BofA Securities and Morgan Stanley.

For reference, initial price thoughts for the new issue were tipped in the high-4% context.

Proceeds are earmarked for general corporate purposes. The structure will include a first call at par plus 50% of the coupon.

Jane Street, a quantitative trading firm, engages in the trading of a range of financial products, including exchange-traded funds, equities, futures, commodities, options, bonds and currencies. Moody's yesterday affirmed its Ba1 corporate and Ba2 senior secured first-lien term loan ratings. The agency has also assigned a Ba2 rating to the proposed secured notes. The outlook is stable.

S&P Global Ratings has a BB- rating on the company and its existing secured debt, also with a stable outlook.

Jane Street in July completed a $300 million add-on term loan B, fungible with an existing TLB due January 2028 (L+275, 0% Libor floor).