General Dynamics plans fixed-, floating-rate notes in seven parts

By Devika Patel

Knoxville, Tenn., May 7 – General Dynamics Corp. intends to offer notes in seven tranches, according to a 424B5 filing with the Securities and Exchange Commission.

The notes will be sold in two floating-rate tranches and five fixed-rate tranches, with the floating-rate tranches due in 2020 and 2021 and the fixed-rate notes due in 2020, in 2021, in 2023, in 2025 and in 2028.

The floaters are non-callable. The 2020 and 2021 fixed-rate notes feature a make-whole call. The remaining fixed-rate notes feature a make-whole call until the par call date and then a par call. The par call dates are one month prior to maturity for the 2023 notes, two months prior to maturity for the 2025 notes and three months prior to maturity for the 2028 notes.

BofA Merrill Lynch, RBC Capital Markets, LLC and Wells Fargo Securities LLC are the bookrunners.

Proceeds will be used to repay approximately $7.5 billion of borrowings under the company’s 364-day 2.375% credit facility due March 15, 2019, which was incurred to finance a portion of the purchase price for the company’s acquisition of CSRA.

General Dynamics is a Falls Church, Va.-based global aerospace and defense company.

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