Published on 8/5/2021 in the Prospect News Investment Grade Daily.
New Issue: Raytheon prices $2 billion of notes in two tranches due 2031 and 2051
By Devika Patel
Knoxville, Tenn., Aug. 5 – Raytheon Technologies Corp. priced $2 billion of notes (Baa1/A-) in two parts on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $1 billion of 1.9% notes due Sept. 1, 2031 at 99.963 to yield 1.904% with a spread of 73 basis points over Treasuries.
Raytheon priced $1 billion of 2.82% notes due Sept. 1, 2051 at 98 bps over Treasuries. These notes were priced at 99.898 to yield 2.825%.
Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, BNP Paribas Securities Corp., BofA Securities, Inc. and J.P. Morgan Securities LLC were the bookrunners.
Proceeds will be used to redeem all $1.1 billion of the company's 2.5% notes due 2022 and all $1.1 billion of its 2.8% notes due 2022.
The defense and homeland security technology company is based in Waltham, Mass.
| Issuer: | Raytheon Technologies Corp.
|
| Amount: | $2 billion
|
| Description: | Notes
|
| Bookrunners: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, BNP Paribas Securities Corp., BofA Securities, Inc. and J.P. Morgan Securities LLC
|
| Senior co-managers: | Barclays, Credit Agricole Securities (USA) Inc., Mizuho Securities USA LLC, MUFG, RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc., UniCredit Capital Markets, LLC and Wells Fargo Securities, LLC
|
| Co-managers: | Academy Securities, Inc., ANZ Securities, Inc., BMO Capital Markets Corp., BNY Mellon Capital Markets, LLC, Credit Suisse Securities (USA) LLC, Scotia Capital (USA) Inc., U.S. Bancorp Investments, Inc., Siebert Williams Shank & Co., LLC, Blaylock Van, LLC, CastleOak Securities, LP, C.L. King & Associates, Inc., Loop Capital Markets LLC and MFR Securities, Inc.
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Trade date: | Aug. 4
|
| Settlement date: | Aug. 10
|
| Ratings: | Moody’s: Baa1
|
| S&P: A-
|
| Distribution: | SEC registered
|
|
|
| 2031 bonds
|
| Amount: | $1 billion
|
| Maturity: | Sept. 1, 2031
|
| Coupon: | 1.9%
|
| Price: | 99.963
|
| Yield: | 1.904%
|
| Spread: | Treasuries plus 73 bps
|
| Call feature: | Make-whole call at Treasuries plus 12.5 bps until June 1, 2031 and then a par call
|
| Cusip: | 75513ECM1
|
|
|
| 2051 bonds
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| Amount: | $1 billion
|
| Maturity: | Sept. 1, 2051
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| Coupon: | 2.82%
|
| Price: | 99.898
|
| Yield: | 2.825%
|
| Spread: | Treasuries plus 98 bps
|
| Call feature: | Make-whole call at Treasuries plus 15 bps until March 1, 2051 and then a par call
|
| Cusip: | 75513ECL3
|
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