Northern Trust sells $500 mil. in 10-year notes

Northern Trust Corp., the third- largest U.S. independent custody bank, sold $500 million of 10- year senior holding company notes, according to a person familiar with the transaction.

The unsecured debt yields 83 basis points more than similar-maturity Treasuries, said the person, who declined to be identified citing lack of authorization to speak publicly. Proceeds may be used for general corporate purposes, Chicago-based Northern Trust said today in a regulatory filing that didn't include the sale's size, timing or maturity.

Custody banks keep records, track performance and lend securities to institutional investors such as pension plans and hedge funds. Northern Trust also manages mutual funds and institutional accounts.

Bank of New York Mellon Corp. and State Street Corp. are the two largest independent custody banks.