Dec. 8 (Bloomberg) -- American Express Co., the credit-card company most dependent on capital markets for fundraising, plans to sell $5.25 billion of two- and three-year fixed- and floating- rate notes guaranteed by the Federal Deposit Insurance Corp., according to a person familiar with the offering.

American Express is marketing $500 million of two-year notes that may float at 85 basis points more than the one-month London interbank offered rate; $1.25 billion of three-year notes that pay 98 basis points more than one-month Libor; and $3.5 billion of three-year, fixed-rate notes that may pay a spread of 88 basis points more than the benchmark midswap rate, said the person, who declined to be identified because terms aren’t set.

One-month Libor, a borrowing benchmark, is currently set at 1.83 percent. A basis point is 0.01 percentage point.

Bonds guaranteed through the Federal Deposit Insurance Corp.’s Temporary Liquidity Guarantee Program are rated Aaa by Moody’s Investors Service and AAA by Standard & Poor’s, the highest rankings.

To contact the reporter on this story: Gabrielle Coppola in New York at gcoppola@bloomberg.net

Last Updated: December 8, 2008 15:50 EST