By Andrea Heisinger
New York, Feb. 10 - Paccar Inc. priced an upsized $750 million medium-term notes (A1/AA-) in two tranches Tuesday, two market sources said.
The deal originally totaled $500 million.
The $250 million of 6.375% three-year notes priced at 99.892 to yield 6.415%, or Treasuries plus 500 basis points.
The $500 million of 6.875% five-year notes priced at 99.974 to yield 6.881%, or Treasuries plus 500 bps.
Both tranches have a make-whole call of Treasuries plus 50 bps.
Bookrunners were Banc of America Securities LLC, Barclays Capital Inc. and Citigroup Global Markets Inc.
Proceeds will be lent to the company's financial services subsidiary to reduce commercial paper borrowings and for general corporate purposes.
The maker of light-, medium- and heavy-duty trucks is based in Bellevue, Wash.
| Issuer: | Paccar Inc.
|
| Issue: | Medium-term notes
|
| Total amount: | $750 million, increased from $500 million
|
| Bookrunners: | Banc of America Securities LLC, Barclays Capital Inc., Citigroup Global Markets Inc.
|
| Trade date: | Feb. 10
|
| Settlement date: | Feb. 13
|
| Ratings: | Moody's: A1
|
| Standard & Poor's: AA-
|
|
|
| Three-year notes
|
| Amount: | $250 million
|
| Maturity: | Feb. 15, 2012
|
| Coupon: | 6.375%
|
| Price: | 99.892
|
| Yield: | 6.415%
|
| Spread: | Treasuries plus 500 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
|
|
| Five-year notes
|
| Amount: | $500 million, increased from $250 million
|
| Maturity: | Feb. 15, 2014
|
| Coupon: | 6.875%
|
| Price: | 99.974
|
| Yield: | 6.881%
|
| Spread: | Treasuries plus 500 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
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