By Andrea Heisinger
New York, April 28 - ITT Corp. priced $1 billion notes (Baa1/BBB+/A-) in two tranches Tuesday, an informed source said.
The $500 million of 4.9% five-year notes priced at 99.807 to yield 4.944%, or Treasuries plus 300 basis points.
The $500 million of 6.125% 10-year notes priced at 99.86 to yield 6.144%, or Treasuries plus 312.5 bps.
Both tranches came in at the tight end of price talk, the source said, which was the 312.5 bps area for the five-year notes and the 325 bps area for the 10-year notes. Both have margins of plus or minus 12.5 bps.
The notes feature a change-of-control put of 101%.
Bookrunners were Citigroup Global Markets Inc. and J.P. Morgan Securities Inc.
Proceeds will be used for general corporate purposes, including repayment of short-term debt.
The high-technology engineering and manufacturing company is based in White Plains, N.Y.
| Issuer: | ITT Corp.
|
| Issue: | Notes
|
| Total amount: | $1 billion
|
| Bookrunners: | Citigroup Global Markets Inc. and J.P. Morgan Securities Inc.
|
| Change-of-control put: | 101%
|
| Trade date: | April 28
|
| Settlement date: | May 1
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
| Fitch: A-
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | May 1, 2014
|
| Coupon: | 4.9%
|
| Price: | 99.807
|
| Yield: | 4.944%
|
| Spread: | Treasuries plus 300 bps
|
| Price talk: | 312.5 bps area, plus or minus 12.5 bps
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | May 1, 2019
|
| Coupon: | 6.125%
|
| Price: | 99.86
|
| Yield: | 6.144%
|
| Spread: | Treasuries plus 312.5 bps
|
| Price talk: | 325 bps area, plus or minus 12.5 bps
|
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