By Andrea Heisinger
New York, Nov. 17 - L-3 Communications Corp. sold $500 million of 3.95% five-year senior notes on Thursday at a spread of Treasuries plus 325 basis points, a market source said.
A source said they were also talked at 325 bps.
The notes (Baa3/BBB-/BBB-) were priced at 99.273 to yield 4.113%.
The securities have a make-whole call at Treasuries plus 50 bps and feature a change-of-control put at 101%.
Bank of America Merrill Lynch, Barclays Capital Inc. and Deutsche Bank Securities Inc. were the active bookrunners. Passive bookrunners were Scotia Capital (USA) Inc., SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC.
Joint lead managers were Mitsubishi UFJ Securities (USA) Inc. and Calyon Securities (USA) Inc.
Co-managers were ANZ Securities Inc., BNY Mellon Capital Markets LLC, Comerica Securities Inc., HSBC Securities (USA) Inc., SMBC Nikko Capital Markets Ltd. and U.S. Bancorp Investments Inc.
Proceeds will be used to redeem $500 million of 6.375% senior subordinated notes due 2015, together with cash on hand.
The notes are guaranteed by the company's domestic subsidiaries.
L-3 last priced debt in a $650 million sale of 10-year paper on Feb. 2, 2011 at 153 bps over Treasuries.
The government-communications and intelligence contractor is based in New York City.
| Issuer: | L-3 Communications Corp.
|
| Guarantors: | Company's domestic subsidiaries
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Maturity: | Nov. 15, 2016
|
| Bookrunners: | Bank of America Merrill Lynch, Barclays Capital Inc., Deutsche Bank Securities Inc. (active), Scotia Capital (USA) Inc., SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC (passive)
|
| Joint lead managers: | Mitsubishi UFJ Securities (USA) Inc., Calyon Securities (USA) Inc.
|
| Co-managers: | ANZ Securities Inc., BNY Mellon Capital Markets LLC, Comerica Securities Inc., HSBC Securities (USA) Inc., SMBC Nikko Capital Markets Ltd., U.S. Bancorp Investments Inc.
|
| Coupon: | 3.95%
|
| Price: | 99.273
|
| Yield: | 4.113%
|
| Spread: | Treasuries plus 325 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Change-of-control put: | 101%
|
| Trade date: | Nov. 17
|
| Settlement date: | Nov. 22
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
| Price talk: | 325 bps
|
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