By Cristal Cody
Tupelo, Miss., May 7 – Leidos Holdings Inc. sold $1.75 billion of notes (Baa3/BBB-) in three tranches tighter than guidance in a Rule 144A and Regulation S transaction on Thursday, according to a market source.
The company priced $500 million of 2.95% three-year notes at a spread of 290 basis points over Treasuries.
Initial price talk was in the Treasuries plus 425 bps area with guidance tightened to the 312.5 bps area, plus or minus 12.5 bps.
A $500 million tranche of 3.625% five-year notes came at a Treasuries plus 340 bps spread.
The notes were talked at the 462.5 bps area with price guidance at the 362.5 bps area, plus or minus 12.5 bps.
Finally, $750 million of 4.375% 10-year notes priced with a 390 bps over Treasuries spread.
The 10-year note was talked to price at the 487.5 bps spread area with guidance firmed to the 412.5 bps area, plus or minus 12.5 bps.
BofA Securities Inc., Citigroup Global Markets Inc. and MUFG were the bookrunners.
Proceeds will be used to pay the outstanding balance on the company’s Dynetics Bridge Facility.
Leidos is a Reston, Va.-based defense, aviation, information technology and engineering company.
| Issuer: | Leidos Holdings Inc.
|
| Amount: | $1.75 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities Inc., Citigroup Global Markets Inc. and MUFG
|
| Trade date: | May 7
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Three-year notes
|
| Amount: | $500 million
|
| Maturity: | May 15, 2023
|
| Coupon: | 2.95%
|
| Spread: | Treasuries plus 290 bps
|
| Price guidance: | Treasuries plus 312.5 bps area, plus or minus 12.5 bps; initial talk at Treasuries plus 425 bps area
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | May 15, 2025
|
| Coupon: | 3.625%
|
| Spread: | Treasuries plus 340 bps
|
| Price guidance: | Treasuries plus 362.5 bps area, plus or minus 12.5 bps; initial talk at Treasuries plus 462.5 bps area
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | May 15, 2030
|
| Coupon: | 4.375%
|
| Spread: | Treasuries plus 390 bps
|
| Price guidance: | Treasuries plus 412.5 bps area, plus or minus 12.5 bps; initial talk at Treasuries plus 487.5 bps area
|
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