By Sheri Kasprzak
New York, Oct. 13 - Raytheon Inc. priced $2 billion of notes on Wednesday in three tranches, according to a pricing sheet.
The notes (Baa1/A-/A-) were sold through bookrunners Citigroup Global Markets Inc., Credit Suisse Securities and UBS Investment Bank. Co-managers were Bank of America Merrill Lynch and J.P. Morgan Securities LLC.
The sale included $400 million 1.625% five-year notes, which priced at 99.562 to yield 1.717%, or 60 basis points over Treasuries. There is a make-whole call at 10 bps over Treasuries.
Raytheon also sold $1 billion 3.125% 10-year notes at 99.465 to yield 3.188%, or 77 bps over Treasuries. There is a make-whole call at 15 bps over Treasuries.
The company also priced $600 million 4.875% 30-year notes at 99.361 to yield 4.916% for a 110 bps spread over Treasuries. The tranche includes a make-whole call at 20 bps over Treasuries.
Proceeds will be used for general corporate purposes, including working capital, capital expenditures, debt service requirements and the repayment of outstanding debt, repurchases of shares of common stock under the company's share repurchase program, discretionary pension contributions or other business initiatives, including possible acquisitions.
Based in Waltham, Mass., Raytheon is a defense contractor.
| Issuer: | Raytheon Inc.
|
| Issue: | Notes
|
| Amount: | $2 billion
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: A-
|
| Fitch: A-
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities, UBS Investment Bank
|
| Co-managers: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC
|
| Pricing date: | Oct. 13
|
| Settlement date: | Oct. 20
|
|
|
| Five-year notes
|
| Amount: | $400 million
|
| Maturity: | Oct. 15, 2015
|
| Coupon: | 1.625%
|
| Price: | 99.562
|
| Yield: | 1.717%
|
| Spread: | 60 bps over Treasuries
|
| Call: | Make-whole at 10 bps over Treasuries
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | Oct. 15, 2020
|
| Coupon: | 3.125%
|
| Price: | 99.465
|
| Yield: | 3.188%
|
| Spread: | 77 bps over Treasuries
|
| Call: | Make-whole at 15 bps over Treasuries
|
|
|
| 30-year notes
|
| Amount: | $600 million
|
| Maturity: | Oct. 15, 2040
|
| Coupon: | 4.875%
|
| Price: | 99.361
|
| Yield: | 4.916%
|
| Spread: | 110 bps over Treasuries
|
| Call: | Make-whole at 20 bps over Treasuries
|
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