By Andrea Heisinger
New York, May 4 - ABB Finance (USA) Inc. gave terms of its $2.5 billion of notes (A2/A/) priced in three tranches late on Thursday in FWP filings with the Securities and Exchange Commission.
The size of the trade was increased from the $1.5 billion announced in a filing with the Securities and Exchange Commission in the morning.
The $500 million of 1.625% five-year notes sold at 99.3 to yield 1.772% with a spread of 95 basis points over Treasuries. There's a make-whole call at 15 bps over Treasuries.
A $1.25 billion tranche of 2.875% 10-year paper priced at 97.833 to yield 3.129% with a spread of Treasuries plus 120 bps. The paper has a make-whole call at 20 bps over Treasuries.
There was a final $750 million tranche of 4.375% 30-year bonds sold at 96.865 to yield 4.568% with a spread of Treasuries plus 145 bps. There's a make-whole call at Treasuries plus 25 bps.
Active bookrunners were Bank of America Merrill Lynch, Goldman Sachs & Co. and Morgan Stanley & Co. LLC. Passive bookrunners were Barclays Capital Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and Nordea Bank Danmark A/S.
Co-managers were Skandinaviska Enskilda Banken AB (publ), Svenska Handelsbanken AB (publ), SG Americas Securities, LLC, Credit Agricole Securities (USA) Inc. and RBS Securities Inc.
Proceeds will be used for general corporate purposes, including funding a portion of the proposed acquisition of Thomas & Betts Corp.
The notes are guaranteed by Zurich-based parent company ABB Ltd.
The unit of the power and automation technology company is based in Norwalk, Conn.
| Issuer: | ABB Finance (USA) Inc.
|
| Guarantor: | ABB Ltd.
|
| Issue: | Notes
|
| Amount: | $2.5 billion, increased from $1.5 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Goldman Sachs & Co., Morgan Stanley & Co. LLC (active), Barclays Capital Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Nordea Bank Danmark A/S (passive)
|
| Co-managers: | Skandinaviska Enskilda Banken AB (publ), Svenska Handelsbanken AB (publ), SG Americas Securities, LLC, Credit Agricole Securities (USA) Inc., RBS Securities Inc.
|
| Trade date: | May 3
|
| Settlement date: | May 8
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | May 8, 2017
|
| Coupon: | 1.625%
|
| Price: | 99.3
|
| Yield: | 1.772%
|
| Spread: | Treasuries plus 95 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
|
|
| 10-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | May 8, 2022
|
| Coupon: | 2.875%
|
| Price: | 97.833
|
| Yield: | 3.129%
|
| Spread: | Treasuries plus 120 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
|
|
| 30-year bonds
|
| Amount: | $750 million
|
| Maturity: | May 8, 2042
|
| Coupon: | 4.375%
|
| Price: | 96.865
|
| Yield: | 4.568%
|
| Spread: | Treasuries plus 145 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
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