American Express priced the senior tranche of its latest credit card notes at Libor plus 28 basis points, according to a regulatory filing.
The $500 million of are rated ‘AAA’ by Fitch Ratings. They have a weighted average life of five years and a legal maturing of Feb. 15, 2019.
The deal’s $22.222 million ‘A-‘-rated class of five-year notes was priced at Libor plus 45 basis points.
The $33.334 million ‘BBB-;-rated class of five-year notes was priced at Libor plus 70 basis points
Barclays and RBC Capital Markets are the lead underwriters.
The notes are secured by receivables generated by American Express’ consumer and small business charge accounts that have been designated to the trust and may include commercial charge receivables in the future, according to Fitch's presale report. Charge card accounts differ from credit card accounts in that they require a full payment of the charges made each month by the due date.