By Sheri Kasprzak
New York, May 24 - United Technologies Corp. came to market Thursday with $8.3 billion of fixed-rate notes in four tranches and $1.5 billion of floating-rate notes in two tranches, according to an FWP filing with the Securities and Exchange Commission.
The fixed-rate notes include $1 billion of 1.2% three-year notes, $1.5 billion of 1.8% five-year notes, $2.3 billion of 3.1% 10-year notes and $3.5 billion of 4.5% 30-year notes.
The three-year notes priced at a spread of Treasuries plus 80 basis points. The notes priced at 99.944 to yield 1.219%.
The five-year notes priced at a spread of Treasuries plus 105 bps. The notes priced at 99.914 to yield 1.818%.
The 10-year notes priced at a spread of Treasuries plus 135 bps. The notes priced at 99.923 to yield 3.109%.
The 30-year notes priced at a spread of Treasuries plus 173 bps. The notes priced at 98.767 to yield 4.576%.
All of the fixed-rate notes feature a make-whole call. The three-year notes are callable at Treasuries plus 12.5 bps, and the five-year notes are callable at Treasuries plus 15 bps. The 10-year notes are callable at Treasuries plus 20 bps, and the 30-year notes are callable at Treasuries plus 25 bps.
The floating-rate notes include $1 billion of 18-month notes and $500 million of three-year notes.
The 18-month notes bear interest at Libor plus 27 bps.
The three-year notes bear interest at Libor plus 50 bps.
The notes (A2/A/A) were sold through joint bookrunners Bank of America Merrill Lynch, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. and RBS Securities Inc.
Proceeds will be used to partially fund the acquisition of Goodrich Corp. The remainder will be used for general corporate purposes.
United Technologies is a Hartford, Conn.-based company that provides technology products and services to the building and aerospace industries.
| Issuer: | United Technologies Corp.
|
| Issue: | Fixed- and floating-rate notes
|
| Amount: | $9.8 billion
|
| Bookrunners: | Bank of America Merrill Lynch, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. and RBS Securities Inc.
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Fitch: A
|
| Trade date: | May 24
|
| Settlement date: | June 1
|
|
|
| Three-year fixed-rate notes
|
| Amount: | $1 billion
|
| Maturity: | June 1, 2015
|
| Coupon: | 1.2%
|
| Price: | 99.944
|
| Yield: | 1.219%
|
| Spread: | Treasuries plus 80 bps
|
| Call option: | Make-whole at Treasuries plus 12.5 bps
|
|
|
| Five-year fixed-rate notes
|
| Amount: | $1.5 billion
|
| Maturity: | June 1, 2017
|
| Coupon: | 1.8%
|
| Price: | 99.914
|
| Yield: | 1.818%
|
| Spread: | Treasuries plus 105 bps
|
| Call option: | Make-whole at Treasuries plus 15 bps
|
|
|
| 10-year fixed-rate notes
|
| Amount: | $2.3 billion
|
| Maturity: | June 1, 2022
|
| Coupon: | 3.1%
|
| Price: | 99.923
|
| Yield: | 3.109%
|
| Spread: | Treasuries plus 135 bps
|
| Call option: | Make-whole at Treasuries plus 20 bps
|
|
|
| 30-year fixed-rate notes
|
| Amount: | $3.5 billion
|
| Maturity: | June 1, 2042
|
| Coupon: | 4.5%
|
| Price: | 98.767
|
| Yield: | 4.576%
|
| Spread: | Treasuries plus 173 bps
|
| Call option: | Make-whole at Treasuries plus 25 bps
|
|
|
| 18-month floating-rate notes
|
| Amount: | $1 billion
|
| Maturity: | Dec. 2, 2013
|
| Coupon: | Libor plus 27 bps
|
| Price: | Par
|
|
|
| Three-year floating-rate notes
|
| Amount: | $500 million
|
| Maturity: | June 1, 2015
|
| Coupon: | Libor plus 50 bps
|
| Price: | Par
|
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