XTO Energy prices $1.25 billion notes in three tranches; Disney offers $1.1 billion in two parts

By Andrea Heisinger

Omaha, July 12 - On a day when one informed source said "there are a ton of deals," major pricings included XTO Energy Inc.'s $1.25 billion three-tranche sale of senior notes (Baa2/BBB).

Other deals going through included Walt Disney Co.'s $1.1 billion two-tranche deal and $400 million in senior unsecured notes (Baa2/BBB) from Commercial Metals Co.

The XTO issuance was for $300 million of five-year notes that came at 90 basis points over Treasuries, $450 million in 10-year notes that came at 115 bps over and $500 million in 30-year notes at Treasuries plus 152 bps.

The 5.9% five-year notes priced at 99.864 to yield 5.931%, the 6.25% 10-year notes priced at 99.710 to yield 6.289% and the 6.75% 30-year notes priced at 99.881 to yield 6.759%.

Joint bookrunners for the Fort Worth, Texas-based independent energy company's deal were Lehman Brothers Inc., J.P. Morgan Chase & Co. and UBS Investment Bank.

Proceeds will be used to help fund XTO's pending acquisition of properties from Dominion Energy, Inc.

Disney priced a $750 million tranche of three-year floating-rate global notes (A2/A-) at par with a coupon of three-month Libor plus 7 basis points.

The company's other tranche, $350 million in 6% 10-year global notes priced at 99.777.

Joint bookrunners were BNP Paribas Securities Corp., Credit Suisse Securities LLC, Goldman, Sachs & Co., and J.P. Morgan Securities Inc.

The Commercial Metals notes priced at 140 bps over Treauries.

The 6.5% notes came at 99.906 to yield 6.513%.

Banc of America Securities LLC and ABN Amro Inc. were joint bookrunners.

The company, based in Irving, Texas, manufactures, markets and recycles steel and metal products and related materials.

Commercial Metals will use proceeds to repay its 6.80% notes due Aug. 1, 2007, to repay commercial paper and short-term domestic bank borrowings, to fund construction of and working capital for a micro mill in Arizona currently anticipated to begin operations in May 2009 and for general corporate purposes.

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