By Cristal Cody
Tupelo, Miss., March 26 – Huntington Ingalls Industries, Inc. priced $1 billion of senior notes (Baa3/BBB/BBB-) in two parts in a Rule 144A and Regulation S offering on Thursday, according to a market source and a news release.
The company sold $500 million of 3.844% five-year notes at a spread of 340 basis points over Treasuries.
A $500 million tranche of 4.2% 10-year notes priced with a 340 Treasuries plus bps spread.
Both tranches were talked at the 400 bps spread area.
Bookrunners were BofA Securities, Inc., J.P. Morgan Securities LLC and Wells Fargo Securities, LLC.
The notes will be fully and unconditionally guaranteed by each of the company’s domestic subsidiaries that, subject to certain exceptions, guarantees debt under its credit facility or its capital markets debt.
Based in Newport News, Va., Huntington Ingalls Industries is the largest U.S. military shipbuilding company.
| Issuer: | Huntington Ingalls Industries, Inc.
|
| Guarantors: | Domestic subsidiaries that guarantees debt under company’s credit facility or capital markets debt
|
| Amount: | $1 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC and Wells Fargo Securities, LLC
|
| Trade date: | March 26
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Fitch: BBB-
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | May 1, 2025
|
| Coupon: | 3.844%
|
| Spread: | Treasuries plus 340 bps
|
| Price guidance: | Treasuries plus 400 bps area
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | May 1, 2030
|
| Coupon: | 4.2%
|
| Spread: | Treasuries plus 340 bps
|
| Price guidance: | Treasuries plus 400 bps area
|
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