MUFG Union Bank NA on Dec. 9 closed a two-tranche, $1 billion offering of bank notes.
The bank issued $700 million in fixed-rate bank notes with an annual 2.10% coupon and $300 million in floating-rate bank notes with a coupon tied to the secured overnight financing rate, plus 0.710%. Both tranches of notes mature Dec. 9, 2022.
MUFG Union Bank can redeem the fixed-rate notes, in whole or in part, at any time on or after June 9, 2020. The company can redeem the floating-rate notes, in whole but not in part, on or after Nov. 9, 2022.
The company intends to use net proceeds from the offering for general corporate purposes, which include working capital and capital expenditures.
MUFG Securities Americas Inc., the billing and delivering agent, and Morgan Stanley & Co. LLC were joint book runners for the offering. Citigroup Global Markets Inc. served as passive joint book runner. Academy Securities Inc., BofA Securities Inc., Barclays Capital Inc. and Wells Fargo Securities LLC were co-managers for the offering.