Lockheed Martin prices $7 billion notes for acquisition financing; Citigroup bonds ease

By Aleesia Forni

New York, Nov. 16 – Lockheed Martin Corp. joined a pair of utilities in the investment-grade bond primary market on Monday.

A reported $8.6 billion of supply priced during a strong session for investment-grade bonds despite broader market weakness.

Lockheed Martin attracted an order book that was more than four times oversubscribed for its new $7 billion deal, which will be used to repay $6 billion of debt issued to help fund the acquisition of Sikorsky Aircraft Corp.

Tranches of the six-part sale sold more than 20 basis points tighter than initial price thoughts.

Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BofA Merrill Lynch, Credit Agricole, Mizuho Securities and Wells Fargo Securities LLC are the bookrunners.

The global security company is based in Bethesda, Md.

Also on Monday, Duke Energy Corp. sold $1 billion of senior notes in two tranches, while Florida Power & Light Co. priced $600 million of first mortgage bonds at the tight end of talk.

Sources are calling for around $25 billion to $30 billion to price during the final full week of the month.

In the secondary market, Citigroup Inc.’s 4.45% subordinated notes due 2027 traded slightly wider.

The Markit CDX North American Investment Grade 25 index leaked 1 basis point wider over the morning to a spread of 84 bps.

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