Honeywell extends early cash premium, gives exchange results so far

By Susanna Moon

Chicago, Nov. 6 – Honeywell International Inc. said it extended the early participation deadline in its exchange offers to 5 p.m. ET on Nov. 17 from 5 p.m. ET on Nov. 3, coinciding with the final expiration.

In the exchange, the company is offering new 3.812% notes due Nov. 21, 2047. Pricing for the new issue was set using the bid-side yield on the 3% Treasury due May 15, 2047 plus 100 basis points.

For each $1,000 principal amount of existing notes, Honeywell will issue new $1,000 principal amount of new notes and a cash premium.

Investors had tendered the following amount of notes as of the early deadline with the cash premium that will be paid per $1,000 principal amount as follow:

• $15,166,000 of the $215,715,000 of 6.625% debentures due 2028 with a cash premium of $316.80, set using the 2.25% Treasury due Aug. 15, 2027 plus 75 bps;

• $105,972,000 of the $550 million of 5.7% senior notes due 2036 with a cash premium of $301.65, set using the 3% Treasury due May 15, 2047 plus 65 bps;

• $137,431,000 of the $600 million of 5.7% senior notes due 2037 with a cash premium of $313.28, set using the 3% Treasury due May 15, 2047 plus 65 bps; and

• $176,146,000 of the $600 million of 5.375% senior notes due 2041 with a cash premium of $285.17, set using the 3% Treasury due May 15, 2047 plus 75 bps.

The cash premium contains an early exchange premium of $30.00 per $1,000 principal amount that was originally to be paid only to holders who tendered before the early deadline before it was extended to coincide with the offer expiration.

Pricing was fixed at 2 p.m. ET on Nov. 3.

Settlement is planned for Nov. 21.

In addition to the amounts listed above, Honeywell will also pay accrued interest up to but excluding the settlement date in cash.

Honeywell previously said it will not complete the exchange if the response would result in less than $300 million of new notes being issued. That condition has now been met.

The offer is open only to qualified institutional buyers under Rule 144A and non-U.S. persons. The new notes will not be registered under the Securities Act of 1933.

Global Bondholder Services Corp. (866 470-3800 or 212 430-3774) is information agent and exchange agent.

Honeywell is a Morris Plains, N.J., technology and manufacturing company.

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