Charles Schwab Corp. is looking to raise fresh debt in the U.S. investment-grade bond market, after revealing plans to cull jobs and close or downsize offices to curb costs.
The financial services firm is selling $2.35 billion of senior unsecured notes in a two-part deal Tuesday, according to a person familiar with the matter, who asked not to be identified as the details are private.
The longest dated portion of the sale, an 11-year fixed-to-floating rate note, will yield 1.8 percentage points over Treasuries after initial pricing discussions of 2.05 percentage points, the person said. Schwab dropped a separate three-year floating-rate tranche at deal launch.
The Westlake, Texas-based firm, which operates both brokerage and bank businesses, intends to use the sale proceeds for general corporate purposes.
Schwab last tapped capital markets in May, selling a $2.5 billion blue-chip bond. That marked its first debt issuance since a series of regional bank failures rattled the broader banking industry, beginning in March.
Schwab's current raise comes after the firm said in a Monday regulatory filing that it plans to shutter or downsize some real estate and lower employee headcounts to save at least $500 million in costs annually, amid investor pressure.
