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Synchrony Financial offering senior notes

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Synchrony Financial offering senior notes

Synchrony Financialon May 4 entered into an underwriting agreement to issue $500 million aggregateprincipal amount of floating-rate senior notes due Nov. 9, 2017, in a public offering.

The trade date is May 4, and the settlement date is May 9.

Interest on the notes will accrue at a rate of three-month LIBOR,reset on a quarterly basis, plus 1.400% per year. Such interest will be payablequarterly in arrears on Feb. 9, May 9, Aug. 9 and Nov. 9 of each year, beginningAug. 9, and will be reset quarterly on the same dates.

Synchrony Financial estimates that the offering's net proceedswill be $498.5 million, after deducting the underwriting discount and estimatedoffering expenses. The company intends to use the net proceeds to invest in liquidassets to increase the size of its liquidity portfolio or for general corporatepurposes.

The notes will be governed by an indenture, dated Aug. 11, 2014,between Synchrony Financial and Bank of New York Mellon, as trustee, according toa Form 8-K filed May 9.

The company entered the underwriting agreement with CitigroupGlobal Markets Inc. and Morgan Stanley & Co. LLC as representatives of the severalunderwriters.