Huntington Ingalls to price $600 million 10-year senior notes Monday; whisper is 5¼%-5½%

By Paul A. Harris

Portland, Ore., Nov. 2 – Huntington Ingalls Industries, Inc. is guiding a $600 million offering of 10-year senior notes (expected ratings Ba2/BB+) to yield 5¼% to 5½%, according to a market source.

The deal is set to price Monday afternoon trailing a late-morning conference call with investors.

J.P. Morgan Securities LLC, BofA Merrill Lynch, Wells Fargo Securities LLC, Mizuho Securities, Scotia Capital and U.S. Bancorp Investments Inc. are the joint bookrunners for the Rule 144A and Regulation S for life offering.

Capital One South Coast, MUFG and TD Securities are the senior co-managers.

BB&T, Loop Capital Markets and PNC Capital Markets are the co-managers.

The notes come with five-years of call protection.

The Newport News, Va.-based shipbuilder plans to use the proceeds and cash on hand to fund the tender offer for its 7 1/8% notes due 2021 and to redeem the notes that are not tendered. Any remaining proceeds will be used for general corporate purposes.

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