American Express Sells $3 Billion of Bonds in Three-Part Issue

American Express Co. (AXP), the biggest credit-card issuer by purchases, sold $3 billion of bonds in its third benchmark dollar-denominated offering this year.

The company’s $1 billion of 1.3 percent, three-year securities yield 68 basis points more than similar-maturity Treasuries and its $800 million of 2.125 percent, five-year notes pay a relative yield of 78 basis points, according to data compiled by Bloomberg. Its $1.2 billion of three-year, floating-rate debt pay 51 basis points more than the three-month London interbank offered rate.

American Express last sold benchmark securities in May, issuing $1.85 billion in two parts including $1 billion of 1.55 percent debentures due May 2018 with a relative yield of 75 basis points, Bloomberg data show. The bonds traded at 98.35 cents on the dollar to yield 1.91 percent on July 22, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

Barclays Plc, Citigroup Inc., Deutsche Bank AG and Wells Fargo & Co. managed the offering for the New York-based company, Bloomberg data show. The debt is expected to be rated A2 by Moody’s Investors Service.

Benchmark sales are typically at least $500 million.

To contact the reporter on this story: Sarika Gangar in New York at sgangar@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

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