By Andrea Heisinger
New York, Feb. 13 - Praxair Inc. sold $900 million of notes (A2/A/) in two tranches on Wednesday, a market source said.
The size of the trade was increased from $750 million.
There was $400 million of 0.75% three-year notes priced at 99.938 to yield 0.771% with a spread of Treasuries plus 35 basis points. Pricing was in line with talk in the 35 bps area, plus or minus 3 bps.
The tranche has a make-whole call at 5 bps over Treasuries.
A $500 million tranche of 2.7% 10-year notes sold at 99.652 to yield 2.74% with a spread of 72 bps over Treasuries. The tranche sold at the tight end of talk in the 75 bps area, plus or minus 3 bps.
There is a make-whole call at Treasuries plus 10 bps until Nov. 21, 2022, with a par call after that date.
Bookrunners were BofA Merrill Lynch, HSBC Securities (USA) Inc. and Mitsubishi UFJ Securities (USA) Inc.
Proceeds will be used for general corporate purposes, including acquisitions and share repurchases.
Praxair was last in the market with a $700 million trade of notes in two tranches on Nov. 2, 2012. That offering included a 1.05% five-year note sold at 33 bps over Treasuries and a 3.55% 30-year bond priced at 68 bps over Treasuries.
The industrial gas company is based in Danbury, Conn.
| Issuer: | Praxair Inc.
|
| Issue: | Notes
|
| Amount: | $900 million, upsized from $750 million
|
| Bookrunners: | BofA Merrill Lynch, HSBC Securities (USA) Inc., Mitsubishi UFJ Securities (USA) Inc.
|
| Co-managers: | Banca IMI SpA, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, SMBC Nikko Capital Markets Ltd., Williams Capital Group, LP, Wells Fargo Securities, LLC
|
| Trade date: | Feb. 13
|
| Settlement date: | Feb. 21
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
|
|
| Three-year notes
|
| Amount: | $400 million
|
| Maturity: | Feb. 21, 2016
|
| Coupon: | 0.75%
|
| Price: | 99.938
|
| Yield: | 0.771%
|
| Spread: | Treasuries plus 35 bps
|
| Call: | Make-whole at Treasuries plus 5 bps
|
| Price talk: | 35 bps area, plus or minus 3 bps
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Feb. 21, 2023
|
| Coupon: | 2.7%
|
| Price: | 99.652
|
| Yield: | 2.74%
|
| Spread: | Treasuries plus 72 bps
|
| Call: | Make-whole at Treasuries plus 10 bps to Nov. 21, 2022, par call after
|
| Price talk: | 75 bps area, plus or minus 3 bps
|
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