By Aleesia Forni
Virginia Beach, May 11 – Daimler Finance North America LLC tapped Monday’s market for a $3 billion issue of notes (A3/A-/A-) in tranches due 2018, 2020 and 2025, an informed source said.
Daimler sold $800 million of 1.65% three-year notes at 99.872 to yield 1.694%, or Treasuries plus 70 basis points.
Pricing was on top of guidance having tightened from the Treasuries plus mid-70 bps area initial talk.
A second tranche was $250 million of three-year floating-rate notes priced at par to yield Libor plus 45 bps.
The notes were guided at the three-year tranche’s Libor equivalent.
A $1.3 billion 2.45% five-year note priced at 99.804 to yield 2.492%, or Treasuries plus 90 bps.
The notes priced on top of talk. Initial guidance was set in the low- to mid-90 bps area over Treasuries.
Finally, a $650 million 3.3% 10-year note sold with a spread of 105 basis points over Treasuries.
Pricing was at 99.797 to yield 3.324%.
The issue sold on top of guidance having tightened from initial talk in the Treasuries plus 110 bps area.
Bookrunners are BNP Paribas Securities Corp., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Lloyds and Mizuho Securities USA Inc.
Proceeds will be used for general corporate purposes.
The financing unit of Daimler AG is based in Stuttgart, Germany.
| Issuer: | Daimler Finance North America LLC
|
| Issue: | Senior notes
|
| Amount: | $3 billion
|
| Bookrunners: | BNP Paribas Securities Corp., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Lloyds, Mizuho Securities USA Inc.
|
| Trade date: | May 11
|
| Settlement date: | May 18
|
| Ratings: | Moody’s: A3
|
| Standard & Poor’s: A-
|
| Fitch: A-
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Three-year notes
|
| Amount: | $800 million
|
| Maturity: | May 18, 2018
|
| Coupon: | 1.65%
|
| Price: | 99.872
|
| Yield: | 1.694%
|
| Spread: | 70 bps
|
| Price guidance: | 70 bps, tightened from mid-70 bps area
|
|
|
| Three-year floaters
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| Amount: | $250 million
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| Maturity: | May 18, 2018
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| Coupon: | Libor plus 45 bps
|
| Price: | Par
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| Yield: | Libor plus 45 bps
|
| Price guidance: | Libor equivalent
|
|
|
| Five-year notes
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| Amount: | $1.3 billion
|
| Maturity: | May 18, 2020
|
| Coupon: | 2.45%
|
| Price: | 99.804
|
| Yield: | 2.492%
|
| Spread: | 90 bps
|
| Price guidance: | 90 bps, tightened from low- to mid-90 bps area
|
|
|
| 10-year notes
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| Amount: | $650 million
|
| Maturity: | May 19, 2025
|
| Coupon: | 3.3%
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| Price: | 99.797
|
| Yield: | 3.324%
|
| Spread: | 105 bps
|
| Price guidance: | 105 bps, tightened from 110 bps area
|
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