By Andrea Heisinger
New York, Feb. 2 - Government communications and intelligence contractor L-3 Communications Corp. priced $650 million of 4.95% 10-year senior notes on Wednesday at a spread of 153 basis points over Treasuries, said a source close to the deal.
The notes priced well tight of guidance in the 160 bps area, the source said.
The notes (Baa3/BBB-/BBB-) sold at 99.429 to yield 5.023%.
The notes have a make-whole call at 25 bps over Treasuries until Nov. 15, 2020 and are then callable at par. They feature a change-of-control put at 101%.
Barclays Capital Inc., Bank of America Merrill Lynch and Wells Fargo Securities LLC were the active bookrunners. Passive bookrunners were Deutsche Bank Securities Inc. and RBS Securities Inc.
Joint lead managers were SunTrust Robinson Humphrey Inc., Scotia Capital (USA) Inc., SG Americas Securities LLC, Mitsubishi UFJ Securities (USA) Inc. and Calyon Securities (USA) Inc.
BNY Mellon Capital Markets LLC, ANZ Securities Inc., HSBC Securities USA Inc., U.S. Bancorp Investments Inc., Comerica Securities Inc. and SMBC Nikko Capital Markets Ltd. were the co-managers.
Proceeds are being used, along with cash on hand, to redeem $650 million of outstanding 5.875% senior subordinated notes due 2015.
The notes are guaranteed by domestic subsidiaries of the New York City-based company.
| Issuer: | L-3 Communications Corp.
|
| Guarantors: | Domestic subsidiaries
|
| Issue: | Senior notes
|
| Amount: | $650 million
|
| Maturity: | Feb. 15, 2021
|
| Bookrunners: | Barclays Capital Inc., Bank of America Merrill Lynch, Wells Fargo Securities LLC (active), Deutsche Bank Securities Inc., RBS Securities LLC (passive)
|
| Joint lead managers: | SunTrust Robinson Humphrey Inc., Scotia Capital (USA) Inc., SG Americas Securities LLC, Mitsubishi UFJ Securities (USA) Inc., Calyon Securities (USA) Inc.
|
| Co-managers: | BNY Mellon Capital Markets LLC, ANZ Securities Inc., HSBC Securities USA Inc., U.S. Bancorp Investments Inc., Comerica Securities Inc., SMBC Nikko Capital Markets Ltd.
|
| Coupon: | 4.95%
|
| Price: | 99.429
|
| Yield: | 5.023%
|
| Spread: | Treasuries plus 153 bps
|
| Call: | Make-whole at Treasuries plus 25 bps until Nov. 15, 2020, then at par
|
| Change-of-control put: | 101%
|
| Trade date: | Feb. 2
|
| Settlement date: | Feb. 7
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
| Price talk: | 160 bps area
|
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