By Aleesia Forni
New York, Dec. 3 – BAE Systems Holdings Inc. priced $1.5 billion of senior notes in new and reopened tranches on Thursday, a market source said.
The sale (Baa2/BBB+/BBB+) included $500 million of 2.85% five-year notes priced with a spread of 117 basis points over Treasuries.
Also, $750 million of 3.85% 10-year notes sold at 167 bps over Treasuries.
A $250 million tap of the company’s existing 4.75% notes due Oct. 7, 2044 sold at Treasuries plus 195 bps.
The original $300 million issue priced at a spread of Treasuries plus 160 bps on Sept. 30.
All tranches sold at the tight end of guidance.
Proceeds will be used for general corporate purposes.
The bookrunners are BofA Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Barclays, Mizuho Securities and RBC Capital Markets LLC.
The multinational aerospace and defense company is based in London.
| Issuer: | BAE Systems Holdings Inc.
|
| Issue: | Senior notes
|
| Amount: | $1.5 billion
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Barclays, Mizuho Securities, RBC Capital Markets LLC
|
| Trade date: | Dec. 3
|
| Settlement date: | Dec. 10
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB+
|
| Fitch: BBB+
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Notes due 2020
|
| Amount: | $500 million
|
| Maturity: | Dec. 15, 2020
|
| Coupon: | 2.85%
|
| Spread: | Treasuries plus 117 bps
|
| Price guidance: | Treasuries plus 120 bps area
|
|
|
| Notes due 2025
|
| Amount: | $750 million
|
| Maturity: | Dec. 15, 2025
|
| Coupon: | 3.85%
|
| Spread: | Treasuries plus 167 bps
|
| Price guidance: | Treasuries plus 170 bps area
|
|
|
| Notes due 2044
|
| Amount: | $250 million
|
| Maturity: | Oct. 7, 2044
|
| Coupon: | 4.75%
|
| Spread: | Treasuries plus 195 bps
|
| Price guidance: | Treasuries plus 200 bps area
|
| Total issue size: | $550 million
|
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