By Andrea Heisinger
New York, April 2 - Daimler Finance North America LLC priced $1.75 billion of notes (A3/A-/A-) in three tranches on Monday, a market source away from the deal said.
The $600 million of two-year floating-rate notes priced at par to yield Libor plus 78 basis points.
A $650 million tranche of 1.65% three-year paper sold at 99.942 to yield 1.67% with a spread of 118 bps over Treasuries. The paper priced at the tight end of talk in the 120 bps area, a source said.
The third part was $500 million of 2.4% five-year notes priced at 99.986 to yield 2.403% with a spread of Treasuries plus 138 bps. The tranche sold at the tight end of guidance in the 140 bps area.
Barclays Capital Inc., Goldman Sachs & Co., HSBC Securities (USA) Inc. and Mizuho Securities USA Inc. were the bookrunners.
The notes were priced under Rule 144A and Regulation S.
Daimler Finance North America last priced notes in a $1.65 billion three tranche deal on Jan. 4. The 2.3% three-year notes from that offering priced at 195 bps over Treasuries and the 2.95% five-year notes at 210 bps over Treasuries.
The financing unit of automaker Daimler AG is based in Stuttgart, Germany.
| Issuer: | Daimler Finance North America LLC
|
| Issue: | Notes
|
| Amount: | $1.75 billion
|
| Bookrunners: | Barclays Capital Inc., Goldman Sachs & Co., HSBC Securities (USA) Inc., Mizuho Securities USA Inc.
|
| Distribution: | Rule 144A and Regulation S
|
| Trade date: | April 2
|
| Settlement date: | April 10
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A-
|
| Fitch: A-
|
|
|
| Two-year notes
|
| Amount: | $600 million
|
| Maturity: | April 10, 2014
|
| Coupon: | Libor plus 78 bps
|
| Price: | Par
|
| Yield: | Libor plus 78 bps
|
|
|
| Three-year notes
|
| Amount: | $650 million
|
| Maturity: | April 10, 2015
|
| Coupon: | 1.65%
|
| Price: | 99.942
|
| Yield: | 1.67%
|
| Spread: | Treasuries plus 118 bps
|
| Price talk: | 120 bps area
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | April 10, 2017
|
| Coupon: | 2.4%
|
| Price: | 99.986
|
| Yield: | 2.403%
|
| Spread: | Treasuries plus 138 bps
|
| Price talk: | 140 bps area
|
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