By Cristal Cody
Tupelo, Miss., March 26 – ABB Finance (USA) Inc. priced $1.5 billion of guaranteed notes (A2/A) in three tranches on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company sold $300 million of 2.8% two-year notes at 99.936 to yield 2.833%, or a spread of Treasuries plus 55 basis points.
ABB Finance priced $450 million of 3.375% five-year notes at 99.932 to yield 3.39%. The notes priced with a spread of 75 bps over Treasuries.
In the final tranche, the company sold $750 million of 3.8% 10-year notes at par to yield a spread of Treasuries plus 95 bps.
The notes priced on the tight side of guidance.
Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC were the bookrunners.
The notes are guaranteed by Zurich-based parent company ABB Ltd.
Proceeds from the deal will be used for general corporate purposes.
The unit of the power and automation technology company is based in Norwalk, Conn.
| Issuer: | ABB Finance (USA) Inc.
|
| Guarantor: | ABB Ltd.
|
| Amount: | $1.5 billion
|
| Description: | Notes
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC
|
| Co-managers: | Barclays, HSBC Securities (USA) Inc. and Morgan Stanley & Co. LLC
|
| Trade date: | March 26
|
| Settlement date: | April 3
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Distribution: | SEC registered
|
|
|
| Two-year notes
|
| Amount: | $300 million
|
| Maturity: | April 3, 2020
|
| Coupon: | 2.8%
|
| Price: | 99.936
|
| Yield: | 2.833%
|
| Spread: | Treasuries plus 55 bps
|
| Call feature: | Make-whole call any time at greater of par or Treasuries plus 10 bps
|
| Price guidance: | Treasuries plus 60 bps area
|
|
|
| Five-year notes
|
| Amount: | $450 million
|
| Maturity: | April 3, 2023
|
| Coupon: | 3.375%
|
| Price: | 99.932
|
| Yield: | 3.39%
|
| Spread: | Treasuries plus 75 bps
|
| Call feature: | Make-whole call prior to one month before maturity at greater of par or Treasuries plus 12.5 bps; thereafter at par
|
| Price guidance: | Treasuries plus 80 bps area
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | April 3, 2028
|
| Coupon: | 3.8%
|
| Price: | Par
|
| Yield: | 3.8%
|
| Spread: | Treasuries plus 95 bps
|
| Call feature: | Make-whole call prior to three months before maturity at greater of par or Treasuries plus 15 bps; thereafter at par
|
| Price guidance: | Treasuries plus 100 bps area
|
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