By Aleesia Forni
Virginia Beach, Nov. 19 – Parker-Hannifin Corp. sold $1.5 billion of notes (A2/A/A) in a three-tranche offering on Tuesday, according to three separate FWP filings with the Securities and Exchange Commission.
The company priced $500 million of 3.3% 10-year notes at 99.78 to yield 3.326%, or Treasuries plus 100 basis points.
There was a $500 million tranche of 4.2% notes due 2034 priced at 99.893 to yield 4.208%, or Treasuries plus 115 bps.
Finally, $500 million of 4.45% 30-year bonds sold with a spread of Treasuries plus 140 bps.
Pricing was at 99.868 to yield 4.458%.
All tranches sold at the tight end of price talk.
Morgan Stanley & Co. LLC, Wells Fargo Securities LLC and Mizuho Securities (USA) Inc. were the bookrunners.
Proceeds will be used to repay borrowings under the company’s commercial paper program and for other general corporate purposes.
Parker-Hannifin is a Cleveland-based manufacturer of motion and control technologies.
| Issuer: | Parker-Hannifin Corp.
|
| Issue: | Medium-term notes, series A
|
| Amount: | $1.5 billion
|
| Bookrunners: | Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, Mizuho Securities (USA) Inc.
|
| Senior co-manager: | KeyBanc Capital Markets Inc.
|
| Co-managers: | Barclays, Goldman Sachs & Co., J.P. Morgan Securities LLC, RBS Securities Inc.
|
| Trade date: | Nov. 18
|
| Settlement date: | Nov. 21
|
| Ratings: | Moody’s: A2
|
| Standard & Poor’s: A
|
| Fitch: A
|
| Distribution: | SEC-registered
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Nov. 21, 2024
|
| Coupon: | 3.3%
|
| Price: | 99.78
|
| Yield: | 3.326%
|
| Spread: | Treasuries plus 100 bps
|
| Price talk: | Treasuries plus 105 bps area
|
| Make-whole call: | Treasuries plus 15 bps prior to Aug. 21, 2024, then callable at par
|
|
|
| 20-year bonds
|
| Amount: | $500 million
|
| Maturity: | Nov. 21, 2034
|
| Coupon: | 4.2%
|
| Price: | 99.893
|
| Yield: | 4.208%
|
| Spread: | Treasuries plus 115 bps
|
| Price talk: | Treasuries plus 120 bps area
|
| Make-whole call: | Treasuries plus 20 bps prior to May 21, 2034, then callable at par
|
|
|
| 30-year bonds
|
| Amount: | $500 million
|
| Maturity: | Nov. 21, 2044
|
| Coupon: | 4.45%
|
| Price: | 99.868
|
| Yield: | 4.458%
|
| Spread: | Treasuries plus 140 bps
|
| Price talk: | Treasuries plus 145 bps area
|
| Make-whole call: | Treasuries plus 20 bps prior to May 21, 2044, then callable at par
|
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