Published on 2/26/2024 in the Prospect News Investment Grade Daily.
New Issue: Wabtec prices $500 million 5.611% senior notes due 2034 at par
By Marisa Wong
Los Angeles, Feb. 26 – Westinghouse Air Brake Technologies Corp. (Wabtec) priced $500 million of 5.611% senior notes due March 11, 2034 (Baa3/BBB/BBB-) on Monday, according to an FWP filing with the Securities and Exchange Commission.
The notes priced at par to yield 5.611%, or with a spread over Treasuries of 132 basis points.
The company may call the notes with a make-whole premium until Dec. 11, 2033, when the par call option starts.
There is change-of-control protection at 101.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, PNC Capital Markets LLC, TD Securities (USA) LLC, BofA Securities, Inc., BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., HSBC Securities (USA) Inc., MUFG Securities Americas Inc., U.S. Bancorp Investments, Inc. and WauBank Securities LLC are joint bookrunners.
The notes will be guaranteed by the company’s subsidiaries that guarantee Wabtec’s credit agreement.
Proceeds from the notes will be used with cash on hand and borrowings under a credit agreement to repay all of the company’s outstanding notes due on March 15, 2024, according to a 424B5 filed earlier in the day.
The issuer is a Pittsburgh-based provider of products and services for rail and other industrial markets.
| Issuer: | Westinghouse Air Brake Technologies Corp.
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| Amount: | $500 million
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| Issue: | Senior notes
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| Maturity: | March 11, 2034
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| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, PNC Capital Markets LLC, TD Securities (USA) LLC, BofA Securities, Inc., BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., HSBC Securities (USA) Inc., MUFG Securities Americas Inc., U.S. Bancorp Investments, Inc. and WauBank Securities LLC
|
| Senior co-managers: | BMO Capital Markets Corp., Dollar Bank, Federal Savings Bank, Goldman Sachs & Co. LLC, Huntington Securities, Inc., Northwest Bank, Scotia Capital (USA) Inc. and SG Americas Securities, LLC
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| Trustee: | U.S. Bank Trust Co., NA
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| Counsel to issuer: | Jones Day
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| Counsel to underwriters: | Cravath, Swaine & Moore LLP
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| Coupon: | 5.611%
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| Price: | Par
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| Yield: | 5.611%
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| Spread: | Treasuries plus 132 bps
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| Call options: | Make-whole at Treasuries plus 20 bps until Dec. 11, 2033; par call after that
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| Change-of-control put: | At 101
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| Pricing date: | Feb. 26
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| Settlement date: | March 11
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| Ratings: | Moody’s: Baa3
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| S&P: BBB
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| Fitch: BBB-
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| Distribution: | SEC registered
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| Cusip: | 960386AR1
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