New Issue: Honeywell sells $1.75 billion of senior notes due 2029, 2034

By Wendy Van Sickle and Cristal Cody

Columbus, Ohio, May 12 – Honeywell International Inc. priced $1.75 billion of senior notes in two tranches (A2/A/A) on Friday, according to an FWP filed with the Securities and Exchange Commission and details from a market source.

There was $750 million of 4.25% notes due Jan. 15, 2029 that priced at a spread of 85 basis points over Treasuries. These notes priced at 99.772 to yield 4.294%. Price talk was in the Treasuries plus 100 bps area.

The deal also included $1 billion of 4.5% notes due Jan. 15, 2034 at a spread Treasuries plus 115 bps. These notes priced at 99.121 to yield 4.604%. Talk had the notes coming in the 130 bps area.

BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC were the joint bookrunners.

Proceeds will be used to repay Honeywell’s commercial paper and the remainder of the net proceeds will be used for general corporate purposes. As of March 31, the company’s U.S. commercial paper had a weighted average interest rate of 4.84% and a weighted average remaining maturity of approximately 35 days, and its European commercial paper had a weighted average interest rate of 2.85% and a weighted average remaining maturity of approximately 34 days.

The company also priced €650 million of 3.5% notes due May 17, 2029 at 99.795 to yield 3.556% and €500 million principal amount of 3.75% notes due 2032. Proceeds of the euro-denominated senior notes will also be used for commercial paper.

The Charlotte, N.C.-based technology company makes aerospace products, control technologies for buildings and industry and performance materials.

Issuer:	Honeywell International Inc.
Amount:	$1.75 billion
Issue:	Senior notes
Bookrunners:	BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC
Senior co-managers:	Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, Santander US Capital Markets LLC, BBVA Securities Inc., BNP Paribas Securities Corp., SG Americas Securities, LLC, TD Securities (USA) LLC, UniCredit Capital Markets LLC and U.S. Bancorp Investments, Inc.
Co-managers:	Academy Securities, Inc., Credit Agricole Securities (USA) Inc., Barclays, HSBC Securities (USA) Inc., ICBC Standard Bank plc, NatWest Markets Securities Inc., RBC Capital Markets, LLC, Scotia Capital (USA) Inc. and Standard Chartered Bank
Trustee:	Deutsche Bank Trust Co. America
Counsel to issuer:	In-house
Counsel to underwriters:	Davis Polk & Wardwell LLP
Trade date:	May 12
Settlement date:	May 17
Ratings:	Moody’s: A2
	S&P: A
	Fitch: A
Distribution:	SEC registered
2029 notes
Amount:	$750 million
Maturity:	Jan. 15, 2029
Coupon:	4.25%
Price:	99.772
Yield:	4.294%
Spread:	Treasuries plus 85 bps
Call:	Make-whole call at Treasuries plus 15 bps
Price talk:	Treasuries plus 100 bps area
Cusip:	438516CL8
2034 notes
Amount:	$1 billion
Maturity:	Jan. 15, 2034
Coupon:	4.5%
Price:	99.121
Yield:	4.604%
Spread:	Treasuries plus 115 bps
Call:	Make-whole call at Treasuries plus 20 bps
Price talk:	Treasuries plus 130 bps area
Cusip:	438516CM6

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