New Issue: Honeywell prices $2 billion of senior notes in three tranches

By Wendy Van Sickle and Cristal Cody

Columbus, Ohio, Oct. 28 – Honeywell International Inc. priced $2 billion of senior notes (A2/A/A) in three tranches on Friday, according to an FWP filing with the Securities and Exchange Commission.

Honeywell sold $400 million of 4.85% two-year notes at 99.983 to yield 4.859%, or a spread of 40 basis points over Treasuries. Price talk was in the 50 bps area.

A $500 million tranche of 4.95% notes due Feb. 15, 2028 came at 99.989 to yield 4.954%. The notes priced with a Treasuries plus 75 bps spread. Price talk was in the 90 bps area.

The company sold $1.1 billion of 5% notes Feb. 15, 2033 at 99.018 to yield 5.125% and a 110 bps spread over Treasuries. Price talk was in the 130 bps area.

Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA LLC and Morgan Stanley & Co. LLC were the bookrunners.

The company also priced a concurrent offering of €1 billion of 4.125% notes due Nov. 2, 2034 at 98.917 to yield 4.242% at a spread of Bunds of 216 bps or 125 bps over mid-swaps.

Proceeds will be used for general corporate purposes, which may include the redemption or repayment of the €1.25 billion aggregate principal amount of 1.3% senior notes due 2023 maturing on Feb. 22, 2023.

Honeywell is a technology and manufacturing company based in Morristown, N.J.

Issuer:	Honeywell International Inc.
Amount:	$2 billion
Issue:	Senior notes
Bookrunners:	Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA LLC and Morgan Stanley & Co. LLC
Senior co-managers:	BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America, Inc., Wells Fargo Securities, LLC, BBVA Securities Inc., BNP Paribas Securities Corp., Santander Investment Securities Inc., SG Americas Securities, LLC, TD Securities (USA) LLC, U.S. Bancorp Investments, Inc. and UniCredit Capital Markets LLC
Co-managers:	Academy Securities Inc., Barclays, Credit Agricole Securities (USA) Inc., HSBC Securities (USA) Inc., ICBC Standard Bank plc, NatWest Markets Securities Inc., RBC Capital Markets, LLC and Scotia Capital (USA) Inc. and Standard Chartered Bank
Trustee:	Deutsche Bank Trust Co. Americas
Counsel to issuer:	In-house
Counsel to underwriters:	Davis Polk & Wardwell LLP
Trade date:	Oct. 28
Settlement date:	Nov. 2
Ratings:	Moody’s: A2
	S&P: A
	Fitch: A
Distribution:	SEC registered
Two-year notes
Amount:	$400 million
Maturity:	Nov. 1, 2024
Coupon:	4.85%
Price:	99.983
Yield:	4.859%
Spread:	Treasuries plus 40 bps
Call features:	Make-whole call at Treasuries plus 10 bps
Price talk:	Treasuries plus 50 bps area
Cusip:	438516CH7
2028 notes
Amount:	$500 million
Maturity:	Feb. 15, 2028
Coupon:	4.95%
Price:	99.989
Yield:	4.954%
Spread:	Treasuries plus 75 bps
Call features:	Make-whole call before Jan. 15, 2028 at Treasuries plus 15 bps; thereafter at par
Price talk:	Treasuries plus 90 bps area
Cusip:	438516CJ3
2033 notes
Amount:	$1.1 billion
Maturity:	Feb. 15, 2033
Coupon:	5%
Price:	99.018
Yield:	5.125%
Spread:	Treasuries plus 110 bps
Call features:	Make-whole call before Nov. 15, 2022 at Treasuries plus 15 bps; thereafter at par
Price talk:	Treasuries plus 130 bps area
Cusip:	438516CK0

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