By Paul A. Harris
Portland, Ore., Aug. 3 – Sensata Technologies, Inc. priced a $750 million issue of 10.5-year senior notes (Ba3/BB+) at par to yield 3¾% in a Monday drive-by, according to market sources.
The yield printed at the tight end of yield talk in the 3 7/8% area. Initial talk was in the very low 4% area.
Joint bookrunner Barclays will bill and deliver. Goldman Sachs & Co. LLC, BofA Securities Inc., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC and RBC Capital Markets LLC were also bookrunners.
The Attleboro, Mass.-based supplier of sensing, electrical protection, control and power management solutions plans to use the proceeds to repay outstanding borrowings under its revolving credit facility and for general corporate purposes, which may include redeeming, along with cash on hand, all or a portion of the 6¼% senior notes due 2026 upon becoming callable in February 2021.
| Issuer: | Sensata Technologies, Inc.
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| Amount: | $750 million
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| Maturity: | Feb. 15, 2031
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| Securities: | Senior notes
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| Bookrunners: | Barclays (bill and deliver), Goldman Sachs & Co. LLC, BofA Securities Inc., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC and RBC Capital Markets LLC
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| Coupon: | 3¾%
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| Price: | Par
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| Yield: | 3¾%
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| Spread: | 320 bps
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| Call protection: | 5.5 years
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| Trade date: | Aug. 3
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| Settlement date: | Aug. 17
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| Ratings: | Moody's: Ba3
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| S&P: BB+
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| Price talk: | 3 7/8% area
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| Marketing: | Drive-by
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