By Lisa Kerner
Charlotte, N.C., Aug. 10 – General Dynamics Corp. priced $1 billion of senior unsecured notes in two maturities on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
A $500 million tranche of 1.875% seven-year notes priced at Treasuries plus 60 basis points. The notes priced at 99.316 to yield 1.98%.
A $500 million tranche of 2.125% 10-year notes sold at 70 bps over Treasuries. The notes priced at 98.956 to yield 2.242%.
J.P. Morgan Securities LLC, Lloyds Securities Inc. and BofA Merrill Lynch are the joint bookrunners.
Proceeds will be used for general corporate purposes, including the possible repurchase of shares of common stock.
The notes are guaranteed by American Overseas Marine Co., LLC; Bath Iron Works Corp.; Electric Boat Corp.; General Dynamics Government Systems Corp.; General Dynamics Land Systems Inc.; General Dynamics Ordnance and Tactical Systems, Inc.; General Dynamics-OTS, Inc.; Gulfstream Aerospace Corp.; and National Steel and Shipbuilding Co.
Based in Falls Church, Va., General Dynamics is an aerospace and defense company.
| Issuer: | General Dynamics Corp.
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| Guarantors: | American Overseas Marine Co., LLC; Bath Iron Works Corp.; Electric Boat Corp.; General Dynamics Government Systems Corp.; General Dynamics Land Systems Inc.; General Dynamics Ordnance and Tactical Systems, Inc.; General Dynamics-OTS, Inc.; Gulfstream Aerospace Corp.; National Steel and Shipbuilding Co.
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| Issue: | Senior unsecured notes
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| Amount: | $1 billion
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| Bookrunners: | J.P. Morgan Securities LLC, Lloyds Securities Inc., BofA Merrill Lynch
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| Senior co-managers: | BBVA Securities Inc., RBC Capital Markets LLC, Wells Fargo Securities LLC
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| Co-managers: | Credit Suisse Securities (USA) LLC, Drexel Hamilton, LLC, Mizuho Securities USA Inc., MUFG
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| Trade date: | Aug. 9
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| Settlement date: | Aug. 12 (expected)
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| Distribution: | SEC registered
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| Seven-year notes
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| Amount: | $500 million
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| Maturity: | Aug. 15, 2023
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| Coupon: | 1.875%
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| Price: | 99.316
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| Yield: | 1.98%
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| Spread: | Treasuries plus 60 bps
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| Make-whole call: | Treasuries plus 10 bps
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| Par call: | On or after June 15, 2023
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| 10-year notes
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| Amount: | $500 million
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| Maturity: | Aug. 15, 2026
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| Coupon: | 2.125%
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| Price: | 98.956
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| Yield: | 2.242%
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| Spread: | Treasuries plus 70 bps
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| Make-whole call: | Treasuries plus 12.5 bps
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| Par call: | On or after May 15, 2026
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