By Cristal Cody
Tupelo, Miss., April 27 – Air Products and Chemicals Inc. priced $3.8 billion of senior notes (A2/A) in five tranches on Monday, according to a market source and an FWP filed with the Securities and Exchange Commission.
The company sold $550 million of 1.5% notes due Oct. 15, 2025 at 99.979 to yield 1.504%, or a spread of 110 basis points over Treasuries.
Initial price talk was in the Treasuries plus 155 bps area.
A $650 million tranche of 1.85% seven-year notes priced at 99.901 to yield 1.865% and a 130 bps over Treasuries spread, compared to guidance in the 165 bps spread area.
Air Products sold $900 million of 2.05% 10-year notes at 99.864 to yield 2.065% and with a Treasuries plus 140 bps spread.
The 10-year tranche was guided to print in the 175 bps spread area.
A $750 million offering of 2.7% 20-year notes priced with a 145 bps over Treasuries spread. The notes priced at 99.722 to yield 2.718%.
The notes were talked to print in the 180 bps spread area.
Finally, $950 million of 2.8% 30-year notes priced at 99.636 to yield 2.818%, or a spread of Treasuries plus 155 bps.
Initial price talk on the 30-year bond was at the 190 bps spread area.
Barclays, BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, HSBC Securities (USA) Inc., Mizuho Securities USA Inc., MUFG and SMBC Nikko Securities America Inc. were the bookrunners.
Proceeds will be used to repay debt and for general corporate purposes.
Air Products is an industrial gas and chemical maker based in Allentown, Pa.
| Issuer: | Air Products and Chemicals Inc.
|
| Amount: | $3.8 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays, BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, HSBC Securities (USA) Inc., Mizuho Securities USA Inc., MUFG and SMBC Nikko Securities America Inc.
|
| Co-managers: | Banca IMI SpA, BBVA Securities Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., ING Financial Markets LLC, Lloyds Securities Inc., Santander Investment Securities Inc. and Scotia Capital (USA) Inc.
|
| Trade date: | April 27
|
| Settlement date: | April 30
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $550 million
|
| Maturity: | Oct. 15, 2025
|
| Coupon: | 1.5%
|
| Price: | 9.979
|
| Yield: | 1.504%
|
| Spread: | Treasuries plus 110 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps before Sept. 15, 2025; thereafter at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 155 bps area
|
|
|
| Seven-year notes
|
| Amount: | $650 million
|
| Maturity: | May 15, 2027
|
| Coupon: | 1.85%
|
| Price: | 99.901
|
| Yield: | 1.865%
|
| Spread: | Treasuries plus 130 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps before March 15, 2027; thereafter at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 165 bps area
|
|
|
| 10-year notes
|
| Amount: | $900 million
|
| Maturity: | May 15, 2030
|
| Coupon: | 2.05%
|
| Price: | 99.864
|
| Yield: | 2.065%
|
| Spread: | Treasuries plus 140 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps before Feb. 15, 2030; thereafter at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 175 bps area
|
|
|
| 20-year notes
|
| Amount: | $750 million
|
| Maturity: | May 15, 2040
|
| Coupon: | 2.7%
|
| Price: | 99.722
|
| Yield: | 2.718%
|
| Spread: | Treasuries plus 145 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps before Nov. 15, 2039; thereafter at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 180 bps area
|
|
|
| 30-year notes
|
| Amount: | $950 million
|
| Maturity: | May 15, 2050
|
| Coupon: | 2.8%
|
| Price: | 99.636
|
| Yield: | 2.818%
|
| Spread: | Treasuries plus 155 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps before Nov. 15, 2049; thereafter at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 190 bps area
|
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