New Issue: Huntington Ingalls prices $600 million seven-year notes at par to yield 5%

By Paul A. Harris

Portland, Ore., Nov. 17 – Huntington Ingalls Industries, Inc. priced a $600 million issue of seven-year senior notes (Ba2/BB+/) at par to yield 5% in a quick-to-market transaction on Monday, according to a syndicate source.

The yield printed at the tight end of the 5% to 5¼% yield talk.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BofA Merrill Lynch, U.S. Bancorp Investments Inc. and RBS Securities Inc. were the joint bookrunners.

The Newport News, Va.-based company plans to use the proceeds to refinance its senior notes due 2018.

Huntington Ingalls Industries designs, builds and manages the life-cycle of nuclear and conventionally powered ships for the U.S. Navy and the U.S. Coast Guard.

Issuer:	Huntington Ingalls Industries, Inc.
Amount:	$600 million
Maturity:	Dec. 15, 2021
Securities:	Senior notes
Bookrunners:	Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BofA Merrill Lynch, U.S. Bancorp Investments Inc., RBS Securities Inc.
Senior co-managers:	SMBC Nikko Securities America Inc., MUFG, SunTrust Robinson Humphrey Inc., Scotia Capital, TD Securities (USA) LLC
Co-managers:	PNC Capital Markets LLC, Fifth Third Securities Inc.
Coupon:	5%
Price:	Par
Yield:	5%
Spread:	297 bps
First call:	Dec. 15, 2017 at 102.5
Equity clawback:	35% at 105 until Dec. 15, 2017
Trade date:	Nov. 17
Settlement date:	Dec. 2
Ratings:	Moody's: Ba2
	Standard & Poor's: BB+
Distribution:	Rule 144A and Regulation S for life
Price talk:	5% to 5¼%
Marketing:	Quick to market

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