By Andrea Heisinger
New York, July 5 - General Dynamics Corp. priced $1.5 billion of bonds (A2/A/A) divided evenly among three maturities on Tuesday, said a source close to the deal.
The $500 million of 1.375% notes due 2015 were priced at 99.84 to yield 1.422% with a spread of Treasuries plus 68 basis points. They were sold at the tight end of talk in the 70 bps area.
The tranche has a make-whole call at Treasuries plus 12.5 bps.
A $500 million tranche of 2.25% five-year notes priced at 99.877 to yield 2.276% with a spread of 60 bps over Treasuries. It priced at the tight of guidance in the 60 to 65 bps range.
There is a make-whole call option at 12.5 bps over Treasuries.
The company also priced $500 million of 3.875% 10-year notes at 99.835 to yield 3.895% with a spread of Treasuries plus 78 bps. The notes priced at the tight end of talk in the 80 bps area.
The notes have a make-whole call at Treasuries plus 15 bps.
Bank of America Merrill Lynch, J.P. Morgan Securities LLC, RBS Securities Inc. and Wells Fargo Securities LLC were bookrunners.
BBVA Securities Inc. was co-manager.
Proceeds will be used to repay $750 million of 1.8% notes due on July 15 at maturity and for general corporate purposes.
The deal is guaranteed by certain subsidiaries.
The aerospace and defense company is based in Falls Church, Virginia.
| Issuer: | General Dynamics Corp.
|
| Guarantors: | Certain subsidiaries
|
| Issue: | Notes
|
| Amount: | $1.5 billion
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC, RBS Securities Inc., Wells Fargo Securities LLC
|
| Co-manager: | BBVA Securities Inc.
|
| Trade date: | July 5
|
| Settlement date: | July 12
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Fitch: A
|
|
|
| Notes due 2015
|
| Amount: | $500 million
|
| Maturity: | Jan. 15, 2015
|
| Coupon: | 1.375%
|
| Price: | 99.84
|
| Yield: | 1.422%
|
| Spread: | Treasuries plus 68 bps
|
| Call: | Make-whole at Treasuries plus 12.5 bps
|
| Price talk: | 70 bps area
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | July 15, 2016
|
| Coupon: | 2.25%
|
| Price: | 99.877
|
| Yield: | 2.276%
|
| Spread: | Treasuries plus 60 bps
|
| Call: | Make-whole at Treasuries plus 12.5 bps
|
| Price talk: | 60 to 65 bps
|
|
|
| Ten-year notes
|
| Amount: | $500 million
|
| Maturity: | July 15, 2021
|
| Coupon: | 3.875%
|
| Price: | 99.835
|
| Yield: | 3.895%
|
| Spread: | Treasuries plus 78 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Price talk: | 80 bps area
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
