By Cristal Cody
Tupelo, Miss., June 16 – Westinghouse Air Brake Technologies Corp. (Ba1/BBB-/BBB-) priced an upsized $500 million of 3.2% five-year senior notes on Tuesday at 99.892 to yield 3.224%, or a spread of Treasuries plus 287.5 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes were talked to price at a spread in the 387.5 bps area with guidance tightened to the 312.5 bps spread area, plus or minus 12.5 bps.
The deal was upsized from $400 million.
BofA Securities Inc., J.P. Morgan Securities LLC, PNC Capital Markets LLC, Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., SG Americas Securities, LLC and TD Securities (USA) LLC were the bookrunners.
The company held fixed income investor calls for the offering on Monday.
Proceeds will be used to redeem the company’s floating-rate notes due Sept. 15, 2021.
Wabtec is a Wilmerding, Pa.-based provider of products and services for rail and other industrial markets.
| Issuer: | Westinghouse Air Brake Technologies Corp. (Wabtec)
|
| Amount: | $500 million
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| Maturity: | June 15, 2025
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| Description: | Senior notes
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| Bookrunners: | BofA Securities Inc., J.P. Morgan Securities LLC, PNC Capital Markets LLC, Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., SG Americas Securities, LLC and TD Securities (USA) LLC
|
| Senior co-managers: | BNP Paribas Securities Corp., MUFG, Scotia Capital (USA) Inc. and U.S. Bancorp Investments, Inc.
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| Co-manager: | Huntington Investment Co.
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| Junior co-managers: | KeyBanc Capital Markets Inc., Morgan Stanley & Co. LLC and Stephens Inc.
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| Coupon: | 3.2%
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| Price: | 99.892
|
| Yield: | 3.224%
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| Spread: | Treasuries plus 287.5 bps
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| Call features: | Make-whole call at Treasuries plus 45 bps before May 15, 2025; thereafter at par
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| Trade date: | June 16
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| Settlement date: | June 29
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| Ratings: | Moody’s: Ba1
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| S&P: BBB-
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| Fitch: BBB-
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| Distribution: | SEC registered
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| Price guidance: | Treasuries plus 312.5 bps area, plus or minus 12.5 bps; initial talk at Treasuries plus 387.5 bps area
|
| Marketing: | Fixed income investor calls
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