Published on 12/3/2015 in the Prospect News Investment Grade Daily.
New Issue: Analog Devices sells $1.25 billion of 10-, 30-year senior notes
By Aleesia Forni
New York, Dec. 3 – Analog Devices, Inc. sold a $1.25 billion offering of senior notes (A3/A-) in 10- and 30-year tranches on Thursday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The Norwood, Mass.-based company priced $850 million of 3.9% 10-year bonds at Treasuries plus 160 bps. The issue sold at a price of 99.77 to yield 3.928%.
And $400 million of 5.3% bonds due 2045 priced at 99.553 to yield 5.33%, or 225 bps over Treasuries.
Both tranches came at the tight end of guidance.
There is a change-of-control put at 101%.
J.P. Morgan Securities LLC, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC are the bookrunners.
The maker of circuits for electronic equipment will use the proceeds from the offering to redeem $375 million of notes due 2016 and for general corporate purposes.
| Issuer: | Analog Devices Inc.
|
| Issue: | Senior notes
|
| Amount: | $1.25 billion
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC
|
| Co-managers: | Deutsche Bank Securities Inc., Wells Fargo Securities, LLC, BNY Mellon Capital Markets, LLC
|
| Trade date: | Dec. 3
|
| Settlement date: | Dec. 14
|
| Change-of-control put: | 101%
|
| Ratings: | Moody’s: A3
|
| Standard & Poor’s: A-
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $850 million
|
| Maturity: | Dec. 15, 2025
|
| Coupon: | 3.9%
|
| Price: | 99.77
|
| Yield: | 3.928%
|
| Spread: | Treasuries plus 160 bps
|
| Price guidance: | Treasuries plus 165 bps area, tightened from Treasuries plus 187.5 bps area
|
| Make-whole call: | Treasuries plus 25 bps prior to Sept. 15, 2025, then callable at par
|
|
|
| 30-year notes
|
| Amount: | $400 million
|
| Maturity: | Dec. 15, 2045
|
| Coupon: | 5.3%
|
| Price: | 99.553
|
| Yield: | 5.33%
|
| Spread: | Treasuries plus 225 bps
|
| Price guidance: | Treasuries plus 230 bps area, tightened from Treasuries plus 237.5 bps area
|
| Make-whole call: | Treasuries plus 35 bps prior to June 15, 2045, then callable at par
|
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