By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., Nov. 7 – RTX Corp. priced a $6 billion five-part offering of fixed rate notes (Baa1/BBB+) on Monday, according to an FWP filing with the Securities and Exchange Commission and details from a market source.
The $1.25 billion of 5.75% notes due Nov. 8, 2026 priced at 99.91 to yield 5.783%, or at a spread of 105 basis points over Treasuries after price talk in the Treasuries plus 125 bps area.
The $500 million second tranche of 5.75% notes due Jan. 15, 2029 priced at 99.958 to yield 5.755%, or at a spread of 115 bps over Treasuries. The notes were talked in the Treasuries plus 140 bps area.
The $1 billion of 6% notes due March 15, 2031 priced at 99.933 to yield 6.013%, or at a spread of 135 bps over Treasuries with price talk coming in the Treasuries plus 155 bps area.
RTX also priced $1.5 billion of 6.1% notes due March 15, 2034 priced at 99.812 to yield 6.126%, or at a spread of 147 bps over Treasuries after talk in the Treasuries plus 170 bps area.
Finally, a $1.75 billion tranche of 6.4% notes due March 15, 2054 priced at 99.625 to yield 6.429%, or at a spread of 160 bps over Treasuries. Price talk was in the Treasuries plus 187.5 bps area.
Each series of notes features a make-whole call, followed by a par call.
The 2026 notes and 2029 notes are callable at a make-whole premium of Treasuries plus 20 bps until one month prior to their maturity dates, Oct. 8, 2026 and Dec. 15, 2028, respectively, and after at par.
The remaining three series of notes are callable at a make-whole premium of Treasuries plus 25 bps until two months, three months and six months prior to their maturity dates, respectively. The par call begins on Jan. 15, 2031 for the 2031 notes, Dec. 15, 2033 for the 2034 notes and Sept. 15, 2053 for the 2054 notes.
Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, BofA Securities, Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are lead bookrunners. Barclays, BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., Mizuho Securities USA LLC, RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc., UniCredit Capital Markets, LLC and Wells Fargo Securities, LLC are the joint bookrunners.
Proceeds will be used to repay a portion of the loans under the company’s bridge credit agreement.
Arlington, Va.-based RTX is a global provider of high-technology products and services to the aerospace and defense industries. It was formerly known as Raytheon Technologies Corp.
| Issuer: | RTX Corp.
|
| Amount: | $6 billion
|
| Issue: | Notes
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| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, BofA Securities, Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC (leads); Barclays, BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., Mizuho Securities USA LLC, RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc., UniCredit Capital Markets, LLC and Wells Fargo Securities, LLC
|
| Co-managers: | Blaylock Van, LLC, CastleOak Securities, LP, C.L. King & Associates, Inc., Mischler Financial Group, Inc., R. Seelaus & Co., LLC, Samuel A. Ramirez & Co., Inc. and Siebert Williams Shank & Co., 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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| Counsel to underwriters: | Sullivan & Cromwell LLP
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| Trade date: | Nov. 6
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| Settlement date: | Nov. 8
|
| Ratings: | Moody’s: Baa1
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| S&P: BBB+
|
|
|
| 2026 notes
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| Amount: | $1.25 billion
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| Maturity: | Nov. 8, 2026
|
| Coupon: | 5.75%
|
| Price: | 99.91
|
| Yield: | 5.783%
|
| Spread: | Treasuries plus 105 bps
|
| Call features: | At Treasuries plus 20 bps before Oct. 8, 2026; after at par
|
| Price talk: | Treasuries plus 125 bps area
|
| Cusip: | 75513ECT6
|
|
|
| 2029 notes
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| Amount: | $500 million
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| Maturity: | Jan. 15, 2029
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| Coupon: | 5.75%
|
| Price: | 99.958
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| Yield: | 5.755%
|
| Spread: | Treasuries plus 115 bps
|
| Call features: | At Treasuries plus 20 bps before Dec. 15, 2028; after at par
|
| Price talk: | Treasuries plus 140 bps area
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| Cusip: | 75513ECU3
|
|
|
| 2031 notes
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| Amount: | $1 billion
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| Maturity: | March 15, 2031
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| Coupon: | 6%
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| Price: | 99.933
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| Yield: | 6.013%
|
| Spread: | Treasuries plus 135 bps
|
| Call features: | At Treasuries plus 25 bps before Jan. 15, 2031; after at par
|
| Price talk: | Treasuries plus 155 bps area
|
| Cusip: | 75513ECV1
|
|
|
| 2034 notes
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| Amount: | $1.5 billion
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| Maturity: | March 15, 2034
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| Coupon: | 6.1%
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| Price: | 99.812
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| Yield: | 6.126%
|
| Spread: | Treasuries plus 147 bps
|
| Call features: | At Treasuries plus 25 bps before Dec. 15, 2033; after at par
|
| Price talk: | Treasuries plus 170 bps area
|
| Cusip: | 75513ECW9
|
|
|
| 2054 notes
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| Amount: | $1.75 billion
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| Maturity: | March 15, 2054
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| Coupon: | 6.4%
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| Price: | 99.625
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| Yield: | 6.429%
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| Spread: | Treasuries plus 160 bps
|
| Call features: | At Treasuries plus 25 bps before Sept. 15, 2053; after at par
|
| Price talk: | Treasuries plus 187.5 bps area
|
| Cusip: | 75513ECX7
|
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