Published on 10/23/2017 in the Prospect News Investment Grade Daily.
New Issue: Honeywell International sells $1.2 billion fixed- and floating-rate notes due 2019
By Cristal Cody
Tupelo, Miss., Oct. 23 – Honeywell International Inc. priced $1.2 billion of senior notes (A2/A/A) in two tranches on Monday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $450 million of two-year floating-rate notes at par to yield Libor plus 40 basis points.
Honeywell sold $750 million of 1.8% two-year fixed-rate notes at 99.922 to yield 1.84%, or a spread of Treasuries plus 28 bps.
Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. and BofA Merrill Lynch were the bookrunners.
Proceeds will be used to redeem the company’s euro-denominated floating-rate senior notes due Feb. 22, 2018, which had an interest rate of 0.171% as of Aug. 22, and for general corporate purposes.
Honeywell is a technology and manufacturing company based in Morristown, N.J.
| Issuer: | Honeywell International Inc.
|
| Amount: | $1.2 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. and BofA Merrill Lynch
|
| Senior co-managers: | Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC
|
| Co-managers: | BBVA Securities Inc., BNP Paribas Securities Corp., HSBC Securities (USA) Inc., ICBC Standard Bank plc, Loop Capital Markets LLC, Mizuho Securities USA Inc., RBC Capital Markets, LLC, RBS Securities Inc., SG Americas Securities, LLC, SMBC Nikko Securities America, Inc., Standard Chartered Bank, TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
|
| Trade date: | Oct. 23
|
| Settlement date: | Oct. 30
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Two-year floaters
|
| Amount: | $450 million
|
| Maturity: | Oct. 30, 2019
|
| Coupon: | Libor plus 40 bps
|
| Price: | Par
|
| Yield: | Libor plus 40 bps
|
| Call feature: | None
|
|
|
| Two-year notes
|
| Amount: | $750 million
|
| Maturity: | Oct. 30, 2019
|
| Coupon: | 1.8%
|
| Price: | 99.922
|
| Yield: | 1.84%
|
| Spread: | Treasuries plus 28 bps
|
| Call feature: | Make-whole call at Treasuries plus 5 bps
|
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