By Andrea Heisinger
New York, Feb. 1 - Industrial gas supplier Praxair, Inc. sold an upsized $600 million of 2.45% 10-year notes on Wednesday to yield 65 basis points over Treasuries, a market source said.
The paper was priced tighter than guidance in the 70 bps area, the source said, while the deal size was increased from $500 million.
The notes (A2/A/) were sold at 99.594 to yield 2.496%. There is a make-whole call at Treasuries plus 10 bps until Nov. 15, 2021, and the notes can be redeemed after that date at par.
Bookrunners were Bank of America Merrill Lynch, Citigroup Global Markets Inc. and HSBC Securities (USA) Inc.
Co-managers were Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Mitsubishi UFJ Securities USA Inc., RBS Securities Inc., Santander Investment Securities Inc. and Wells Fargo Securities LLC.
Proceeds are going to repay short-term debt, to fund share repurchases under a repurchase program and for general corporate purposes.
The issuer is based in Danbury, Conn.
| Issuer: | Praxair, Inc.
|
| Issue: | Notes
|
| Amount: | $600 million, increased from $500 million
|
| Maturity: | Feb. 15, 2022
|
| Bookrunners: | Bank of America Merrill Lynch, Citigroup Global Markets Inc., HSBC Securities (USA) Inc.
|
| Co-managers: | Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Mitsubishi UFJ Securities USA Inc., RBS Securities Inc., Santander Investment Securities Inc., Wells Fargo Securities LLC
|
| Coupon: | 2.45%
|
| Price: | 99.594
|
| Yield: | 2.496%
|
| Spread: | Treasuries plus 65 bps
|
| Call: | Make-whole at Treasuries plus 10 bps until Nov. 15, 2021, after at par
|
| Trade date: | Feb. 1
|
| Settlement date: | Feb. 6
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Price talk: | 70 bps area
|
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