Published on 5/13/2014 in the Prospect News Investment Grade Daily.
New Issue: L-3 Communications prices $1 billion of notes due 2017, 2024
By Aleesia Forni
Virginia Beach, May 13 - L-3 Communications Corp. priced $1 billion of senior notes (Baa3/BBB-/BBB-) in tranches due 2017 and 2024 on Tuesday, according to a market source and an FWP filed with the Securities and Exchange Commission.
A $350 million tranche of 1.5% three-year notes sold with a spread of Treasuries plus 70 bps, or 99.851 to yield 1.551%.
There was also $650 million of 3.95% notes due 2024 priced at 99.445 to yield 4.018%. The notes sold with a spread of Treasuries plus 140 bps.
Both tranches priced at the tight end of talk.
BofA Merrill Lynch, Barclays, SunTrust Robinson Humphrey Inc., Deutsche Bank Securities Inc., Mitsubishi UFJ Securities (USA) Inc., Scotia Capital (USA) Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were the joint bookrunners.
Proceeds will be used to redeem the company's 3% convertible contingent debt securities due 2035 and for general corporate purposes.
The notes are guaranteed by the company's domestic subsidiaries.
The government-communications and intelligence contractor is based in New York City.
| Issuer: | L-3 Communications Corp.
|
| Issue: | Senior notes
|
| Amount: | $1 billion
|
| Joint bookrunners: | BofA Merrill Lynch, Barclays, SunTrust Robinson Humphrey Inc., Deutsche Bank Securities Inc., Mitsubishi UFJ Securities (USA) Inc., Scotia Capital (USA) Inc., U.S. Bancorp Investments Inc., Wells Fargo Securities LLC
|
| Senior co-managers: | ANZ Securities, Inc., BNY Mellon Capital Markets, LLC, HSBC Securities (USA) Inc., SMBC Nikko Securities America, Inc.
|
| Co-managers: | BB&T Capital Markets, Comerica Securities Inc.
|
| Trade date: | May 13
|
| Settlement date: | May 28
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $350 million
|
| Maturity: | May 28, 2017
|
| Coupon: | 1.5%
|
| Price: | 99.851
|
| Yield: | 1.551%
|
| Spread: | Treasuries plus 70 bps
|
| Make-whole call: | Treasuries plus 10 bps
|
| Price talk: | Treasuries plus 75 bps area
|
|
|
| 10-year notes
|
| Amount: | $650 million
|
| Maturity: | May 28, 2024
|
| Coupon: | 3.95%
|
| Price: | 99.445
|
| Yield: | 4.018%
|
| Spread: | Treasuries plus 140 bps
|
| Make-whole call: | Treasuries plus 20 bps prior to Feb. 28, 2024, then callable at par
|
| Price talk: | Treasuries plus 145 bps area
|
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