Jane Street upsizes secured notes offering, firms pricing

Jane Street Group LLC has upsized its eight-year (non-call three) senior secured notes offering to $600 million, from $500 million at initial pitch, according to market sources. Pricing has been firmed at 4.5%, and terms for 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, price guidance was revised earlier in today’s session to 4.5%-4.625%, from previous talk in the 4.75% area and initial price thoughts in the high 4% context, sources said.

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).