Published on 2/18/2014 in the Prospect News Investment Grade Daily.
New Issue: Illinois Tool prices $2 billion notes in three-, five-, 10-year tranches
By Aleesia Forni
Virginia Beach, Feb. 18 - Illinois Tool Works Inc. priced a $2 billion three-part issue of senior notes (A2/A+/) during Tuesday's session, according to a market source and an FWP filing with the Securities and Exchange Commission.
The sale included a $650 million issue of 0.9% notes due 2017, which priced at 28 basis points over Treasuries.
The notes sold at 99.861 to yield 0.947%.
A $650 million tranche of 1.95% notes due 2019 sold with a spread of 50 bps over Treasuries, or 99.871 to yield 1.977%.
There was also $700 million of 3.5% 10-year notes priced at Treasuries plus 83 bps.
Pricing was at 99.648 to yield 3.542%.
All three tranches were sold at the tight end of talk.
BofA Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC were the joint bookrunners.
Proceeds will be used to repay short-term debt under the company's commercial paper program and for other general corporate purposes.
Based in Glenview, Ill., Illinois Tool Works manufactures industrial products and equipment.
| Issuer: | Illinois Tool Works Inc.
|
| Issue: | Senior notes
|
| Amount: | $2 billion
|
| Joint bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC
|
| Co-managers: | Banca IMI S.p.A., Barclays, BBVA Securities Inc., BMO Capital Markets Corp., Commerz Markets LLC, Danske Markets Inc., HSBC Securities (USA) Inc., ING Financial Markets LLC, Loop Capital Markets LLC, Mizuho Securities USA Inc., nabSecurities, LLC, SG Americas Securities, LLC, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC
|
| Trade date: | Feb. 18
|
| Settlement date: | Feb. 25
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A+
|
|
|
| Notes due 2017
|
| Amount: | $650 million
|
| Maturity: | Feb. 25, 2017
|
| Coupon: | 0.9%
|
| Price: | 99.861
|
| Yield: | 0.947%
|
| Spread: | Treasuries plus 28 bps
|
| Price talk: | Treasuries plus 30 bps, tightened from Treasuries plus 35 bps area
|
| Make-whole call: | Treasuries plus 5 bps
|
|
|
| Notes due 2019
|
| Amount: | $650 million
|
| Maturity: | March 1, 2019
|
| Coupon: | 1.95%
|
| Price: | 99.871
|
| Yield: | 1.977%
|
| Spread: | Treasuries plus 50 bps
|
| Price talk: | Treasuries plus 55 bps area, tightened from Treasures plus 60 bps area
|
| Make-whole call: | Treasuries plus 10 bps
|
|
|
| Notes due 2024
|
| Amount: | $700 million
|
| Maturity: | March 1, 2024
|
| Coupon: | 3.5%
|
| Price: | 99.648
|
| Yield: | 3.542%
|
| Spread: | Treasuries plus 83 bps
|
| Price talk: | Treasuries plus 85 bps area, tightened from Treasuries plus 90 bps area
|
| Make-whole call: | Treasuries plus 15 bps prior to Dec. 1, 2023, then callable at par
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
