Lear, DXC Technology price notes; Philip Morris, VMware to sell fixed-rate notes

By Devika Patel

Knoxville, Tenn., Aug. 14 – Monday saw several new primary deals, with Deerfield, Mich.-based manufacturer and distributor of automotive seating and electrical systems Lear Corp. pricing an offering of fixed-rate senior notes due 2027; McLean, Va., digital information technology services and solutions provider DXC Technology Co. selling floating-rate senior notes due 2021; Palo Alto, Calif., virtualization solutions provider VMware, Inc. announcing a three-part sale of fixed-rate senior notes; New York producer of cigarette and tobacco products Philip Morris International Inc. reporting an offering fixed-rate notes in two parts; and New York online brokerage firm E*Trade Financial Corp. in the market with a two-tranche sale of fixed-rate senior notes.

Lear prices 10-year notes

Lear priced a $750 million sale of 3.8% 10-year senior notes (Baa3/BBB-/) on Monday with a spread of Treasuries plus 167 basis points. The notes priced at 99.294 to yield 3.885%.

Bookrunners are BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC.

Proceeds will be used to redeem the company’s $500 million of 4.75% senior notes due 2023 at par plus interest and a make-whole premium, to repay debt under its revolving credit facility and for general corporate purposes.

DXC issues floating-rate notes

DXC priced $650 million of four-year floating-rate senior notes (Baa2/BBB/BBB+) at par.

Interest accrues at a rate equal to Libor plus 95 bps per annum.

BofA Merrill Lynch is the active bookrunner. Citigroup Global Markets, Lloyds Securities, Mizuho Securities USA Inc., MUFG and RBC Capital Markets Corp. are also bookrunners.

Proceeds will be used for general corporate purposes, including debt repayment.

VMware offers three-part notes

VMware plans a three-part offering of fixed-rate senior notes, which will have make-whole calls and then par calls.

BofA Merrill Lynch and J.P. Morgan Securities are the bookrunners.

Proceeds will be used to fund a $1 billion share repurchase program through Aug. 31, 2018, to repay in full two promissory notes with a combined principal of $1.23 billion and for general corporate purposes.

Philip Morris to price notes

Philip Morris intends to offer fixed-rate notes in two tranches, which will have make-whole calls and par calls.

Goldman Sachs & Co., HSBC Securities, J.P. Morgan Securities, Mizuho Securities USA Inc. and Societe Generale Corporate & Investment Banking are the bookrunners.

Proceeds will be used for general corporate purposes, to refinance debt, meet working capital requirements or repurchase common stock.

E*Trade to sell two tranches

E*Trade intends to offer fixed-rate senior notes in two parts due 2022 and 2027.

The notes will have make-whole calls until one month prior to maturity for the 2022 notes and three months prior to maturity for the 2027 notes and par calls after those dates.

Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, J.P. Morgan Securities and Wells Fargo Securities LLC are the bookrunners.

Proceeds will be used to help redeem all of the company’s $540 million of 5.375% senior notes due 2022 and all of its $460 million of 4.625% senior notes due 2023.

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