Published on 9/12/2018 in the Prospect News Investment Grade Daily.
New Issue: Westinghouse Air Brake prices $2.5 billion of notes in three tranches
By Cristal Cody
Tupelo, Miss., Sept. 12 – Westinghouse Air Brake Technologies Corp. (Baa3/BBB/BBB-) priced a $2.5 billion three-tranche offering of notes on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The $500 million of three-year floating-rate notes priced at par to yield Libor plus 105 basis points.
Wabtec sold $750 million of 4.15% notes due March 15, 2024 at 99.805 to yield 4.19%, or a spread of Treasuries plus 133 bps.
A $1.25 billion tranche of 4.7% 10-year notes priced at 99.889 to yield 4.714%. The notes were placed with a spread of 175 bps over Treasuries.
Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BofA Merrill Lynch and PNC Capital Markets LLC were the bookrunners.
The company held fixed income investor calls for the offering on Monday and Tuesday.
Proceeds will be used to fund the merger of the company and General Electric Co.'s transportation businesses.
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: | $2.5 billion
|
| Description: | Notes
|
| Bookrunners: | Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BofA Merrill Lynch and PNC Capital Markets LLC
|
| Senior co-managers: | BB&T Capital Markets, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Citizens Capital Markets, Inc., Credit Agricole Securities (USA) Inc., HSBC Securities (USA) Inc., MUFG, Scotia Capital (USA) Inc., SG Americas Securities, LLC, TD Securities (USA) LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
|
| Co-manager: | Huntington Investment Co.
|
| Trade date: | Sept. 12
|
| Settlement date: | Sept. 14
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
| Marketing: | Fixed income investor calls
|
|
|
| Three-year floaters
|
| Amount: | $500 million
|
| Description: | Floating-rate notes
|
| Maturity: | Sept. 15, 2021
|
| Coupon: | Libor plus 105 bps
|
| Price: | Par
|
| Yield: | Libor plus 105 bps
|
| Call features: | On or after Sept. 16, 2019 at par; special mandatory call at 101% if the closing of the transactions with General Electric Co. has not occurred or is terminated by close of business on Aug. 20, 2019
|
|
|
| 5.5-year notes
|
| Amount: | $750 million
|
| Description: | Fixed-rate notes
|
| Maturity: | March 15, 2024
|
| Coupon: | 4.15%
|
| Price: | 99.805
|
| Yield: | 4.19%
|
| Spread: | Treasuries plus 133 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps before Feb. 15, 2024; thereafter at par; special mandatory call at 101% if the closing of the transactions with General Electric Co. has not occurred or is terminated by close of business on Aug. 20, 2019
|
|
|
| 10-year notes
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| Amount: | $1.25 billion
|
| Description: | Fixed-rate notes
|
| Maturity: | Sept. 15, 2028
|
| Coupon: | 4.7%
|
| Price: | 99.889
|
| Yield: | 4.714%
|
| Spread: | Treasuries plus 175 bps
|
| Call features: | Make-whole call at Treasuries plus 30 bps before June 15, 2028; thereafter at par; special mandatory call at 101% if the closing of the transactions with General Electric Co. has not occurred or is terminated by close of business on Aug. 20, 2019
|
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