By Andrea Heisinger
New York, June 27 - ADT Corp. sold $2.5 billion of senior notes (Baa2/BBB/BBB+) on Wednesday in three maturities, a market source said.
The $750 million of 2.25% five-year notes sold at 99.896 to yield 2.272% with a spread of Treasuries plus 155 basis points. The tranche was priced at the tight end of guidance in the 160 bps area, plus or minus 5 bps.
There is a make-whole call at 25 bps over Treasuries.
A $1 billion tranche of 3.5% 10-year notes priced at 99.764 to yield 3.528% with a 195 bps over Treasuries spread. These notes were also sold at the low end of price talk in the 195 bps area, plus or minus 5 bps.
The notes have a make-whole call at 30 bps over Treasuries.
Finally, there was a $750 million tranche of 4.875% 30-year bonds priced at 98.925 to yield 4.944% with a spread of Treasuries plus 230 bps. The bonds were sold at the tight end of talk in the 230 bps area.
There is a make-whole call at 35 bps over Treasuries.
The sale was done under Rule 144A and Regulation S.
Bookrunners were Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC.
Proceeds are being used to repay intercompany debt and make other cash payments to Tyco International Ltd. to allow it to fund purchases or the redemption of debt.
The notes are guaranteed by Tyco until the spinoff of ADT is completed.
ADT is a security and alarm system company and unit of Tyco, based in Schaffhausen, Switzerland.
| Issuer: | ADT Corp.
|
| Guarantor: | Tyco International Ltd. until spinoff
|
| Issue: | Senior notes
|
| Amount: | $2.5 billion
|
| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC
|
| Distribution: | Rule 144A, Regulation S
|
| Trade date: | June 27
|
| Settlement date: | July 5
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB+
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | July 15, 2017
|
| Coupon: | 2.25%
|
| Price: | 99.896
|
| Yield: | 2.272%
|
| Spread: | Treasuries plus 155 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 160 bps area, plus or minus 5 bps
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | July 15, 2022
|
| Coupon: | 3.5%
|
| Price: | 99.764
|
| Yield: | 3.528%
|
| Spread: | Treasuries plus 190 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Price talk: | 195 bps area, plus or minus 5 bps
|
|
|
| 30-year bonds
|
| Amount: | $750 million
|
| Maturity: | July 15, 2042
|
| Coupon: | 4.875%
|
| Price: | 98.925
|
| Yield: | 4.944%
|
| Spread: | Treasuries plus 225 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Price talk: | 230 bps area, plus or minus 5 bps
|
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