New Issue: General Dynamics prices $2.4 billion of notes in three parts

By Aleesia Forni

Columbus, Ohio, Nov. 2 - General Dynamics Corp. priced $2.4 billion of notes (A2/A/A) in three maturities on Thursday, according to a filing with the Securities and Exchange Commission.

A $900 million tranche of 1% five-year notes priced at Treasuries plus 40 basis points. The notes priced at 99.376 to yield 1.128%.

There is a make-whole call at 10 bps over Treasuries.

A $1 billion tranche of 2.25% 10-year notes sold at 65 bps over Treasuries. The notes priced at 98.987 to yield 2.364%.

The tranche has a make-whole call at 12.5 bps over Treasuries.

The $500 million tranche of 3.6% 30-year paper priced at 99.58 to yield 3.623%, or a spread of 75 bps over Treasuries. There is a make-whole call at 15 bps over Treasuries.

The joint bookrunners for the notes are Bank of America Merrill Lynch, J.P. Morgan Securities LLC, RBS Securities Inc. and Wells Fargo Securities LLC.

The company intends to use the proceeds for general corporate purposes, as well as to redeem the company's 4.25% 2013 notes, 5.25% 2014 notes and 5.375% 2015 notes.

Based in Falls Church, Va., General Dynamics is an aerospace and defense company.

Issuer:	General Dynamics Corp.
Issue:	Senior notes
Amount:	$2.4 billion
Joint bookrunners:	Bank of America Merrill Lynch, J.P. Morgan Securities LLC, RBS Securities Inc., Wells Fargo Securities LLC
Senior co-managers:	Williams Capital Group LP, Lloyds Securities Inc. Mitsubishi UFJ Securities (USA), Inc., Mizuho Securities USA Inc., U.S. Bancorp Investments, Inc.
Co-managers:	ANZ Securities, Inc., Barclays, BNY Mellon Capital Markets, LLC, PNC Capital Markets LLC, SMBC Nikko Capital Markets Ltd., SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC, Scotia Capital (USA) Inc., Credit Suisse Securities (USA) LLC
Trade date:	Nov. 1
Ratings:	Moody's: A2
	Standard & Poor's: A
	Fitch: A
Five-year notes
Amount:	$900 million
Maturity:	Nov. 15, 2017
Coupon:	1%
Price:	99.376
Yield:	1.128%
Spread:	Treasuries plus 40 bps
Call:	Make-whole at 10 bps
10-year notes
Amount:	$1 billion
Maturity:	Nov. 15, 2022
Coupon:	2.25%
Price:	98.987
Yield:	2.364%
Spread:	Treasuries plus 65 bps
Call:	Make-whole at 12.5 bps
30-year notes
Amount:	$500 million
Maturity:	Nov. 15, 2042
Coupon:	3.6%
Price:	99.58
Yield:	3.623%
Spread:	Treasuries plus 75 bps
Call:	Make-whole at 15 bps

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