Published on 7/30/2012 in the Prospect News Investment Grade Daily.
New Issue: Praxair sells $500 million 2.2% 10-year notes at Treasuries plus 72 bps
By Andrea Heisinger
New York, July 30 - Praxair, Inc. priced $500 million of 2.2% 10-year senior notes at Treasuries plus 72 basis points on Monday, a source close to the deal said.
The bonds sold tighter than whispered guidance in the mid-80 bps area, the source said.
The notes (A2/A/) were sold at 99.785 to yield 2.224%. The bonds feature a make-whole call at 10 bps over Treasuries until May 15, 2022 and a par call after that date.
Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC ran the books.
Co-managers were Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Bank of America Merrill Lynch, Mitsubishi UFJ Securities (USA), Inc., RBS Securities Inc., SMBC Nikko Capital Markets Ltd. and Williams Capital Group, LP.
Proceeds will be used to repay short-term debt, to fund share repurchases under a share repurchase program and for general corporate purposes.
The industrial gases maker is based in Danbury, Conn.
| Issuer: | Praxair, Inc.
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Maturity: | Aug. 15, 2022
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Co-managers: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Bank of America Merrill Lynch, Mitsubishi UFJ Securities (USA), Inc., RBS Securities Inc., SMBC Nikko Capital Markets Ltd., Williams Capital Group, LP
|
| Coupon: | 2.2%
|
| Price: | 99.785
|
| Yield: | 2.224%
|
| Spread: | Treasuries plus 72 bps
|
| Call: | Make-whole at Treasuries plus 10 bps until May 15, 2022, after at par
|
| Trade date: | July 30
|
| Settlement date: | Aug. 2
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Price talk: | Mid-80 bps area
|
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