By Paul A. Harris
St. Louis, June 1 - BAE Systems Holdings Inc. priced $1.5 billion of guaranteed notes (Baa2/BBB+/) in two tranches on Monday, according to an informed source.
The British military defense company priced a $500 million tranche of 4.95% five-year notes to yield 250 basis points over Treasuries and a $1 billion tranche of 6.375% 10-year notes to yield Treasuries plus 275 bps.
Both tranches came 12.5 bps through price talk: the five-year notes were talked at 262.5 bps and the 10-year notes at 287.5 bps.
The overall deal generated $7.5 billion of orders, according to the source.
Accounts on both sides of the Atlantic played the deal. However because it was a dollar-denominated offering, participation was skewed toward U.S. accounts, the source added.
Goldman Sachs & Co., J.P. Morgan Securities Inc. and Barclays Capital Inc. were joint bookrunners for the Rule 144A offering.
| Issuer: | BAE Systems Holdings Inc.
|
| Total amount: | $1.5 billion
|
| Security description: | Guaranteed notes
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities Inc., Barclays Capital Inc.
|
| Trade date: | June 1
|
| Settlement date: | June 4
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB+
|
| Distribution; | Rule 144A
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | June 1, 2014
|
| Coupon: | 4.95%
|
| Price: | 99.799
|
| Yield: | 4.996%
|
| Spread: | 250 bps over Treasuries
|
| Call protection: | Non-callable, make-whole at Treasuries plus 40 bps
|
| Price talk: | 262.5 bps
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | June 1, 2019
|
| Coupon: | 6.375%
|
| Price: | 99.651
|
| Yield: | 6.423%
|
| Spread: | 275 bps over Treasuries
|
| Call protection: | Non-callable, make-whole at Treasuries plus 45 bps
|
| Price talk: | 287.5 bps
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
