Honeywell prices exchange offer for four series; new note rate 3.812%

By Wendy Van Sickle

Columbus, Ohio, Nov. 3 – Honeywell International Inc. said it set pricing for an offer in which it will issue new debt securities and pay cash in exchange for four series of its existing notes.

The new notes will mature on Nov. 21, 2047 and will pay interest at a rate of 3.812%, which was set using the bid-side yield on the 3% Treasury due May 15, 2047 plus 100 basis points.

For each $1,000 principal amount of existing notes, Honeywell will issue new $1,000 principal amount of new notes and then a cash premium.

Existing notes tendered by the early participation date of 5 p.m. ET on Nov. 3 will qualify for an early participation premium of $30.00 per $1,000 principal amount.

Pricing was fixed at 2 p.m. ET on Nov. 3.

The total cash premium, including the early participation premium, per $1,000 principal amount for each series are as follow:

• For the $215,715,000 of 6.625% debentures due 2028, $316.80, set using the 2.25% Treasury due Aug. 15, 2027 plus 75 bps;

• For the $550 million of 5.7% senior notes due 2036, $301.65, set using the 3% Treasury due May 15, 2047 plus 65 bps;

• For the $600 million of 5.7% senior notes due 2037, $313.28, set using the 3% Treasury due May 15, 2047 plus 65 bps; and

• For the $600 million of 5.375% senior notes due 2041, $285.17, set using the 3% Treasury due May 15, 2047 plus 75 bps.

The exchange ends at 11:59 p.m. ET on Nov. 17.

Settlement is planned for Nov. 21.

In addition to the amounts listed above, Honeywell will also pay accrued interest up to but excluding the settlement date in cash.

Honeywell said it will not complete the exchange if the response would result in less than $300 million of new notes being issued.

The offer is open only to qualified institutional buyers under Rule 144A and non-U.S. persons. The new notes will not be registered under the Securities Act of 1933.

Global Bondholder Services Corp. (866 470-3800 or 212 430-3774) is information agent and exchange agent.

Honeywell is a Morris Plains, N.J., technology and manufacturing company.

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