Published on 2/24/2023 in the Prospect News Investment Grade Daily.
New Issue: Raytheon Technologies sells $3 billion three-part offering of fixed-rate notes
By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., Feb. 24 – Raytheon Technologies Corp. sold $3 billion of fixed-rate notes in three series (Baa1/A-), according to an FWP filed with the Securities and Exchange Commission.
The $500 million 5% notes due Feb. 27, 2026 sold at 99.972 to yield 5.01%, or at Treasuries plus 60 basis points. The tranche was talked in the 95 bps area.
The $1.25 billion 5.15% notes due Feb. 27, 2033 sold at 99.706 to yield 5.188%, or at Treasuries plus 130 bps. Talk was in the 155 bps area.
The $1.25 billion 5.375% notes due Feb. 27, 2053 sold at 99.822 to yield 5.387%, or at Treasuries plus 150 bps. Talk was in the 175 bps area.
Each series of notes has an optional make-whole call and then an optional par call. The 2026 notes are callable with a Treasuries plus 10 bps premium prior to Jan. 27, 2026 and after at par for the last month. The 2033 notes are callable with a premium of Treasuries plus 20 bps prior to prior to Nov. 27, 2032 and then at par for the last three months. The 2053 notes are callable with a make-whole premium of Treasuries plus 25 bps prior to Aug. 27, 2052 and then at par for the last six months.
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 are the joint bookrunning managers for the offering.
Proceeds from the offering will be used to fund the repayment at maturity of the company’s $1.71 million outstanding 3.65% notes due Aug. 16, 2023 and the repayment at maturity of the company’s $400 million outstanding 3.7% notes due Dec. 15, 2023. Remaining proceeds will be used for general corporate purposes.
The aerospace and defense company is based in Waltham, Mass.
| Issuer: | Raytheon Technologies Corp.
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| Amount: | $3 billion
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| Issue: | Notes
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| 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
|
| Co-managers: | ANZ Securities, Inc., Bancroft Capital, LLC, Barclays, BMO Capital Markets Corp., BNY Mellon Capital Markets, LLC, CastleOak Securities, LP, Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, MFR Securities, Inc., Mischler Financial Group, Inc., Mizuho Securities USA LLC, MUFG Securities Americas Inc., R. Seelaus & Co., LLC, RBC Capital Markets, LLC, Riyad Bank, Samuel A. Ramirez & Co., Inc., Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., Siebert Williams Shank & Co., LLC, UniCredit Capital Markets, LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
|
| Trustee: | Bank of New York Mellon Trust Co., NA
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| Counsel to issuer: | Wachtell, Lipton, Rosen & Katz
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| Ratings: | Moody’s: Baa1
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| S&P: A-
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| Trade date: | Feb. 23
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| Settlement date: | Feb. 27
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|
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| 2026 notes
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| Amount: | $500 million
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| Maturity: | Feb. 27, 2026
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| Coupon: | 5%
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| Price: | 99.972
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| Yield: | 5.01%
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| Spread: | Treasuries plus 60 bps
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| Call features: | Make-whole call at Treasuries plus 10 bps prior to Jan. 27, 2026; after at par
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| Price talk: | Treasuries plus 95 bps area
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| Cusip: | 75513ECQ2
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|
|
| 2033 notes
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| Amount: | $1.25 billion
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| Maturity: | Feb. 27, 2033
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| Coupon: | 5.15%
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| Price: | 99.706
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| Yield: | 5.188%
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| Spread: | Treasuries plus 130 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps prior to prior to Nov. 27, 2032; after at par
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| Price talk: | Treasuries plus 155 bps area
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| Cusip: | 75513ECR0
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|
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| 2053 notes
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| Amount: | $1.25 billion
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| Maturity: | Feb. 27, 2053
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| Coupon: | 5.375%
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| Price: | 99.822
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| Yield: | 5.387%
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| Spread: | Treasuries plus 150 bps
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| Call features: | Make-whole call at Treasuries 25 bps prior to Aug. 27, 2052; after at par
|
| Price talk: | Treasuries plus 175 bps area
|
| Cusip: | 75513ECS8
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