Published on 6/1/2015 in the Prospect News Investment Grade Daily.
New Issue: Precision Castparts sells $2 billion notes due 2020, 2025, 2035, 2045
By Aleesia Forni
Virginia Beach, June 1 – Precision Castparts Corp. priced $2 billion of senior notes (A2/A-/) in tranches due 2020, 2025, 2035 and 2045, according to a market source and an FWP filed with the Securities and Exchange Commission.
The company sold $550 million 2.25% five-year notes at 99.99 to yield 2.252%, or Treasuries plus 70 basis points.
There was also $850 million of 3.25% 10-year notes sold at 99.796 to yield 3.274%. The notes priced with a spread of Treasuries plus 110 bps.
A $275 million tranche of 4.2% 20-year notes sold at 99.397 to yield 4.245%, or Treasuries plus 130 bps.
Finally, $325 million of 4.375% 30-year notes priced at 99.668 to yield 4.395% with a spread of Treasuries plus 145 bps.
BofA Merrill Lynch, Citigroup Global Markets Inc., Mizuho Securities, MUFG, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC are the bookrunners.
Proceeds will be used to pay down commercial paper, to pay $500 million of 0.7% senior notes due December 2015 and for general corporate purposes, which may include acquisitions and share repurchases.
The metal component and industrial products manufacturer for the aerospace industry is based in Portland, Ore.
| Issuer: | Precision Castparts Corp.
|
| Issue: | Senior notes
|
| Amount: | $2 billion
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., Mizuho Securities, MUFG, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC
|
| Senior co-managers: | Barclays, J.P. Morgan Securities LLC, PNC Capital Markets LLC, Scotia Capital (USA) Inc.
|
| Co-managers: | BNY Mellon Capital Markets LLC, Credit Suisse Securities (USA) LLC
|
| Trade date: | June 1
|
| Settlement date: | June 10
|
| Ratings: | Moody’s: A2
|
| Standard & Poor’s: A-
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $550 million
|
| Maturity: | June 15, 2020
|
| Coupon: | 2.25%
|
| Price: | 99.99
|
| Yield: | 2.252%
|
| Spread: | Treasuries plus 70 bps
|
| Price guidance: | Treasuries plus 70 bps area, tightened from 75 bps area
|
| Make-whole call: | Treasuries plus 15 bps prior to May 15, 2020, then callable at par
|
|
|
| 10-year notes
|
| Amount: | $850 million
|
| Maturity: | June 15, 2025
|
| Coupon: | 3.25%
|
| Price: | 99.796
|
| Yield: | 3.274%
|
| Spread: | Treasuries plus 110 bps
|
| Price guidance: | Treasuries plus 110 bps area
|
| Make-whole call: | Treasuries plus 20 bps prior to March 15, 2025, then callable at par
|
|
|
| 20-year notes
|
| Amount: | $275 million
|
| Maturity: | June 15, 2035
|
| Coupon: | 4.2%
|
| Price: | 99.397
|
| Yield: | 4.245%
|
| Spread: | Treasuries plus 130 bps
|
| Price guidance: | Treasuries plus 130 bps area, widened from 125 bps area
|
| Make-whole call: | Treasuries plus 20 bps prior to Dec. 15, 2034, then callable at par
|
|
|
| 30-year bonds
|
| Amount: | $325 million
|
| Maturity: | June 15, 2045
|
| Coupon: | 4.375%
|
| Price: | 99.668
|
| Yield: | 4.395%
|
| Spread: | Treasuries plus 145 bps
|
| Price guidance: | Treasuries plus 145 bps area
|
| Make-whole call: | Treasuries plus 25 bps prior to Dec. 15, 2044, then callable at par
|
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