By Andrea Heisinger
New York, Nov. 30 - Harris Corp. priced an upsized $700 million of notes (Baa1/BBB+/) in two tranches late in the afternoon Tuesday, a source away from the deal said.
The size had been announced at $600 million earlier in the day.
The first part was $400 million of 4.4% 10-year notes priced at 99.429 to yield 4.471% with a spread of Treasuries plus 165 basis points. The notes have a make-whole call at Treasuries plus 25 bps.
A second tranche was $300 million of 6.15% 30-year bonds priced at 99.454 to yield 6.19% with a spread of 205 bps over Treasuries. The bonds are callable at a make-whole amount of 35 bps over Treasuries.
Bookrunners were Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Morgan Stanley & Co. Inc.
The notes feature a change-of-control put at 101%.
Proceeds from the sale are going toward the payment of all or a portion of the purchase price for the pending acquisition of the Schlumberger GCS business, repayment of a portion of outstanding debt under a commercial paper program incurred in connection with the acquisition of CapRock Communications, Inc., and for general corporate purposes.
The communications and information company is based in Melbourne, Fla.
| Issuer: | Harris Corp.
|
| Issue: | Senior notes
|
| Amount: | $700 million, increased from $600 million
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. Inc.
|
| Change-of-control put: | 101%
|
| Trade date: | Nov. 30
|
| Settlement date: | Dec. 3
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
|
|
| 10-year notes
|
| Amount: | $400 million
|
| Maturity: | Dec. 15, 2020
|
| Coupon: | 4.4%
|
| Price: | 99.429
|
| Yield: | 4.471%
|
| Spread: | Treasuries plus 165 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
|
|
| 30-year bonds
|
| Amount: | $300 million
|
| Maturity: | Dec. 15, 2040
|
| Coupon: | 6.15%
|
| Price: | 99.454
|
| Yield: | 6.19%
|
| Spread: | Treasuries plus 205 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
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