Published on 2/26/2024 in the Prospect News Investment Grade Daily.
New Issue: Honeywell sells $4.15 billion of senior notes in five parts
By Wendy Van Sickle
Columbus, Ohio, Feb. 26 – Honeywell International Inc. priced $4.15 billion of senior notes in five tranches (A2/A/A) on Monday, according to an FWP filed with the Securities and Exchange Commission.
There was $500 million of 4.875% notes due Sept. 1, 2029 that priced at a spread of 55 basis points over Treasuries. These notes priced at par to yield 4.875%.
The deal also included $500 million of 4.95% notes due Sept. 1, 2031 at a spread Treasuries plus 65 bps. These notes priced at 99.82 to yield 4.979%.
Honeywell also priced $750 million of 5% senior notes due March 1, 2035 at 99.624 to yield 5.045%, or a spread over Treasuries of 75 bps.
The issuer sold $1.75 billion of 5.25% notes due March 1, 2054 at 85 bps over Treasuries. These notes priced at 99.775 to yield 5.265%.
Finally, the company sold $650 million of 5.25% notes due March 1, 2064 at 95 bps over Treasuries. These notes priced at 99.754 to yield 5.365%.
BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities, LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Mizuho Securities USA LLC and SMBC Nikko Securities America, Inc. were the joint bookrunners.
Proceeds will be used for general corporate purposes, which may include the repayment of debt and the financing of possible acquisitions or business expansion.
The company also priced €1.5 billion of euro-denominated senior notes in equal parts due in six and 12 years with 3.375% and 3.75% coupons, respectively, with proceeds earmarked for general corporate purposes.
The Charlotte, N.C.-based technology company makes aerospace products, control technologies for buildings and industry and performance materials.
| Issuer: | Honeywell International Inc.
|
| Amount: | $4.15 billion
|
| Issue: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities, LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Mizuho Securities USA LLC and SMBC Nikko Securities America, Inc.
|
| Senior co-managers: | BBVA Securities Inc., BNP Paribas Securities Corp., Santander US Capital Markets LLC, SG Americas Securities, LLC, TD Securities (USA) LLC, UniCredit Capital Markets LLC and U.S. Bancorp Investments, Inc.
|
| Co-managers: | Academy Securities, Inc., Barclays, Credit Agricole Securities (USA) Inc., HSBC Securities (USA) Inc., ICBC Standard Bank plc, NatWest Markets Securities Inc., RBC Capital Markets, LLC, Scotia Capital (USA) Inc. and Standard Chartered Bank
|
| Trustee: | Deutsche Bank Trust Co. Americas
|
| Counsel to issuer: | In-house
|
| Counsel to underwriters: | Davis Polk & Wardwell LLP
|
| Trade date: | Feb. 26
|
| Settlement date: | March 1
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| 2029 notes
|
| Amount: | $500 million
|
| Maturity: | Sept. 1, 2029
|
| Coupon: | 4.875%
|
| Price: | Par
|
| Yield: | 4.875%
|
| Spread: | Treasuries plus 55 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps
|
| Cusip: | 438516CQ7
|
|
|
| 2031 notes
|
| Amount: | $500 million
|
| Maturity: | Sept. 1, 2031
|
| Coupon: | 4.95%
|
| Price: | 99.82
|
| Yield: | 4.979%
|
| Spread: | Treasuries plus 65 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps
|
| Cusip: | 438516CR5
|
|
|
| 2035 notes
|
| Amount: | $750 million
|
| Maturity: | March 1, 2035
|
| Coupon: | 5%
|
| Price: | 99.624
|
| Yield: | 5.045%
|
| Spread: | Treasuries plus 75 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps
|
| Cusip: | 438516CS3
|
|
|
| 2054 notes
|
| Amount: | $1.75 billion
|
| Maturity: | March 1, 2054
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| Coupon: | 5.25%
|
| Price: | 99.775
|
| Yield: | 5.265%
|
| Spread: | Treasuries plus 85 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps
|
| Cusip: | 438516CT1
|
|
|
| 2064 notes
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| Amount: | $650 million
|
| Maturity: | March 1, 2064
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| Coupon: | 5.35%
|
| Price: | 99.754
|
| Yield: | 5.365%
|
| Spread: | Treasuries plus 95 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps
|
| Cusip: | 438516CU8
|
|
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