By Aleesia Forni
Virginia Beach, July 29 – Daimler Finance NA sold a $3.5 billion issue of senior notes (A3/A-/A-) in six parts during Tuesday’s session, a market source said.
The company’s sale included $150 million of 18-month floating-rate notes sold at par to yield Libor plus 55 basis points.
The tranche was added at the deal’s launch.
Also, $550 million of two-year floating-rate notes sold at par to yield Libor plus 71 bps.
Price guidance was set at the Libor equivalent to the fixed-rate two-year notes.
A $450 million tranche of 1.6% two-year notes sold at 99.961 to yield 1.612%, or Treasuries plus 95 bps.
The tranche sold at the tight end of the Treasuries plus 100 bps area guidance, which had tightened from the Treasuries plus 105 bps area.
There was a $1 billion 2% three-year note priced at 99.797 to yield 2.069% with a spread of Treasuries plus 105 bps.
Guidance was set in the Treasuries plus 110 bps area after having tightened from the Treasuries plus 115 bps area.
Also priced was $850 million of 2.7% five-year notes with a spread of 115 bps over Treasuries. Pricing was at 99.805 to yield 2.742%.
The tranche was guided in the 120 bps area over Treasuries following initial talk in the Treasuries plus 125 bps area.
Finally, $500 million of 3.5% 10-year notes priced at 99.541 to yield 3.555% with a spread of Treasuries plus 130 bps.
Guidance was in the Treasuries plus 135 bps area. Initial talk was set in the Treasuries plus 140 bps area.
The bookrunners for the Rule 144A and Regulation S deal were BofA Merrill Lynch, Credit Agricole, Deutsche Bank Securities Inc., Goldman Sachs & Co. and Morgan Stanley & Co. LLC.
Proceeds will be used for general corporate purposes.
The financing unit of Daimler AG is based in Stuttgart, Germany.
| Issuer: | Daimler Finance North America LLC
|
| Issue: | Senior notes
|
| Amount: | $3.5 billion
|
| Bookrunners: | BofA Merrill Lynch, Credit Agricole, Deutsche Bank Securities Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC
|
| Trade date: | July 28
|
| Settlement date: | Aug. 3
|
| Ratings: | Moody’s: A3
|
| Standard & Poor’s: A-
|
| Fitch: A-
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| 18-month floaters
|
| Amount: | $150 million
|
| Maturity: | Feb. 3, 2017
|
| Coupon: | Libor plus 55 bps
|
| Price: | Par
|
| Yield: | Libor plus 55 bps
|
|
|
| Two-year floaters
|
| Amount: | $550 million
|
| Maturity: | Aug. 3, 2017
|
| Coupon: | Libor plus 71 bps
|
| Price: | Par
|
| Yield: | Libor plus 71 bps
|
| Price guidance: | Libor equivalent to two-year fixed-rate notes
|
|
|
| Two-year fixed-rate notes
|
| Amount: | $450 million
|
| Maturity: | Aug. 3, 2017
|
| Coupon: | 1.6%
|
| Price: | 99.961
|
| Yield: | 1.612%
|
| Spread: | Treasuries plus 95 bps
|
| Price guidance: | Treasuries plus 100 bps area, tightened from Treasuries plus 105 bps area
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | Aug. 3, 2018
|
| Coupon: | 2%
|
| Price: | 99.797
|
| Yield: | 2.069%
|
| Spread: | Treasuries plus 105 bps
|
| Price guidance: | Treasuries plus 110 bps area, tightened from Treasuries plus 115 bps area
|
|
|
| Five-year notes
|
| Amount: | $850 million
|
| Maturity: | Aug. 3, 2020
|
| Coupon: | 2.7%
|
| Price: | 99.805
|
| Yield: | 2.742%
|
| Spread: | Treasuries plus 115 bps
|
| Price guidance: | Treasuries plus 120 bps area, tightened from Treasuries plus 125 bps area
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Aug. 3, 2025
|
| Coupon: | 3.5%
|
| Price: | 99.541
|
| Yield: | 3.555%
|
| Spread: | Treasuries plus 130 bps
|
| Price guidance: | Treasuries plus 135 bps area, tightened from Treasuries plus 140 bps area
|
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