By Cristal Cody
Tupelo, Miss., Dec. 6 – Martin Marietta Materials Inc. sold $1.4 billion of senior notes (Baa3/BBB+) in three tranches on Wednesday, according to a market source.
The company priced $300 million of floating-rate notes due Dec. 20, 2019 at Libor plus 50 basis points.
A $500 million tranche of 3.5% 10-year notes priced with a Treasuries plus 120 bps spread.
Martin Marietta sold $600 million of 4.25% 30-year notes with a spread of 155 bps over Treasuries.
The notes priced on the tight side of talk.
Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used to acquire Panadero Corp. and Panadero Aggregates Holdings, LLC for $1.625 billion in cash and to refinance in full at maturity the $300 million of the company’s 6.6% senior notes due April 15, 2018.
The producer of construction aggregates is based in Raleigh, N.C.
| Issuer: | Martin Marietta Materials Inc.
|
| Amount: | $1.4 billion
|
| Description: | Senior notes
|
| Bookrunners: | Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC
|
| Trade date: | Dec. 6
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB+
|
| Distribution: | SEC registered
|
|
|
| Two-year floaters
|
| Amount: | $300 million
|
| Maturity: | Dec. 20, 2019
|
| Coupon: | Libor plus 50 bps
|
| Price guidance: | Libor plus 55 bps area
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Dec. 15, 2027
|
| Coupon: | 3.5%
|
| Spread: | Treasuries plus 120 bps
|
| Price guidance: | Treasuries plus 125 bps area
|
|
|
| 30-year notes
|
| Amount: | $600 million
|
| Maturity: | Dec. 15, 2047
|
| Coupon: | 4.25%
|
| Spread: | Treasuries plus 155 bps
|
| Price guidance: | Treasuries plus 160 bps area
|
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