By Andrea Heisinger
Omaha, March 6 - Royal Philips Electronics NV priced $3.1 billion of notes (A3/A-/A-) in four tranches Wednesday, an informed source said.
The size was increased from three tranches, with a floating-rate tranche added.
The $350 million of three-year floating-rate notes priced at par to yield three-month Libor plus 115 basis points.
The $500 million of 4.625% five-year notes priced at 99.23 to yield 4.8%, or Treasuries plus 220 bps. The tranche has a make-whole redemption of Treasuries plus 35 bps.
The $1.25 billion of 5.75% 10-year notes priced at 98.805 to yield 5.91%, or Treasuries plus 220 bps. The tranche has a make-whole of Treasuries plus 35 bps.
The $1 billion of 6.875% 30-year notes priced at 98.33 to yield 7.009%, or Treasuries plus 240 bps. They have a make-whole of Treasuries plus 40 bps.
Notes in each of the tranches has a change-of-control put of 101%.
The issue was about two times oversubscribed, a source close to the deal said, with total books at $6 billion.
Bookrunners were Citigroup Global Markets Inc. and J.P. Morgan Securities Inc.
Co-managers were Credit Suisse Securities LLC, RBS Greenwich Capital and UBS Investment Bank.
Proceeds will be used to repay existing debt and for general corporate purposes.
The electronics company is based in Amsterdam.
| Issuer: | Royal Philips Electronics NV
|
| Amount: | $3.1 billion
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities Inc.
|
| Co-managers: | Credit Suisse Securities LLC, RBS Greenwich Capital, UBS Investment Bank
|
| Change-of-control put: | 101%
|
| Trade date: | March 5
|
| Settlement date: | March 11
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A-
|
| Fitch: A-
|
|
|
| Three-year tranche
|
| Amount: | $350 million
|
| Issue: | Floating-rate notes
|
| Maturity: | March 11, 2011
|
| Coupon: | Three-month Libor plus 115 bps
|
| Price: | Par
|
| Yield: | Three-month Libor plus 115 bps
|
|
|
| Five-year tranche
|
| Amount: | $500 million
|
| Issue: | Notes
|
| Maturity: | March 11, 2013
|
| Coupon: | 4.625%
|
| Price: | 99.23
|
| Yield: | 4.8%
|
| Spread: | Treasuries plus 220 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
|
|
| 10-year tranche
|
| Amount: | $1.25 billion
|
| Issue: | Notes
|
| Maturity: | March 11, 2018
|
| Coupon: | 5.75%
|
| Price: | 98.805
|
| Yield: | 5.91%
|
| Spread: | Treasuries plus 220 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
|
|
| 30-year tranche
|
| Amount: | $1 billion
|
| Issue: | Notes
|
| Maturity: | March 11, 2038
|
| Coupon: | 6.875%
|
| Price: | 98.33
|
| Yield: | 7.009%
|
| Spread: | Treasuries plus 240 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
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