Published on 7/30/2019 in the Prospect News Investment Grade Daily.
New Issue: Honeywell International prices $2.7 billion of senior notes in four tranches
By Cristal Cody
Tupelo, Miss., July 30 – Honeywell International Inc. priced $2.7 billion of senior notes (A2/A/A) in four tranches on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $600 million of three-year floating-rate notes at par to yield Libor plus 37 basis points.
Honeywell sold $600 million of 2.15% three-year notes at 99.899 to yield 2.185%, or a spread of Treasuries plus 37 bps.
A $750 million tranche of 2.3% five-year notes came at 99.793 to yield 2.344%. The notes priced with a Treasuries plus 50 bps spread.
The company sold $750 million of 2.7% 10-year notes at 99.643 to yield 2.741% and a 68 bps spread over Treasuries.
Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used to repay at maturity the company’s $1.25 billion 1.4% senior notes due 2019, $750 million 1.8% senior notes due 2019 and $700 million floating-rate senior notes due 2019 and for general corporate purposes.
Honeywell is a technology and manufacturing company based in Morristown, N.J.
| Issuer: | Honeywell International Inc.
|
| Amount: | $2.7 billion
|
| Description: | Senior notes
|
| Bookrunners: | Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC
|
| Co-managers: | Academy Securities Inc., BofA Securities, Inc., Barclays, BBVA Securities Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., ICBC Standard Bank plc, Mizuho Securities USA LLC, NatWest Markets Securities Inc., RBC Capital Markets, LLC, Santander Investment Securities Inc., SG Americas Securities, LLC, SMBC Nikko Securities America, Inc., Standard Chartered Bank, TD Securities (USA) LLC, UniCredit Capital Markets LLC, U.S. Bancorp Investments, Inc. and Williams Capital Group, LP
|
| Trade date: | July 30
|
| Settlement date: | Aug. 8
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Three-year floaters
|
| Amount: | $600 million
|
| Maturity: | Aug. 2, 2022
|
| Coupon: | Libor plus 37 bps
|
| Price: | Par
|
| Yield: | Libor plus 37 bps
|
| Call feature: | None
|
|
|
| Three-year notes
|
| Amount: | $600 million
|
| Maturity: | Aug. 2, 2022
|
| Coupon: | 2.15%
|
| Price: | 99.899
|
| Yield: | 2.185%
|
| Spread: | Treasuries plus 37 bps
|
| Call features: | Make-whole call before July 8, 2022 at Treasuries plus 6 bps; thereafter at par
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | Aug. 15, 2024
|
| Coupon: | 2.3%
|
| Price: | 99.793
|
| Yield: | 2.344%
|
| Spread: | Treasuries plus 50 bps
|
| Call features: | Make-whole call before July 15, 2024 at Treasuries plus 10 bps; thereafter at par
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | Aug. 15, 2029
|
| Coupon: | 2.7%
|
| Price: | 99.643
|
| Yield: | 2.741%
|
| Spread: | Treasuries plus 68 bps
|
| Call features: | Make-whole call before May 15, 2029 at Treasuries plus 12.5 bps; thereafter at par
|
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