Published on 11/30/2016 in the Prospect News Investment Grade Daily.
New Issue: Analog Devices sells $2.1 billion of notes due 2021, 2023, 2026, 2046
By Cristal Cody
Eureka Springs, Ark., Nov. 30 – Analog Devices, Inc. sold $2.1 billion of senior notes (A3/BBB) in four tranches on Wednesday, according to a market source.
The company priced $400 million of 2.5% five-year notes with a spread of 75 basis points over Treasuries.
The $550 million tranche of 3.125% seven-year notes priced at a 100 bps spread over Treasuries.
Analog Devices placed $900 million of 3.5% 10-year notes with a spread of 120 bps over Treasuries.
The $250 million tranche of 4.5% 30-year notes were sold at a spread of Treasuries plus 150 bps.
J.P. Morgan Securities LLC, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC and MUFG were the bookrunners.
There is a change-of-control put at 101%, according to a 424B5 filing with the Securities and Exchange Commission.
The notes have a make-whole call and then a par call.
Proceeds will be used for a portion of the cash consideration for the company’s planned merger with Linear Technology Corp. and for general corporate purposes.
The maker of circuits for electronic equipment is based in Norwood, Mass.
| Issuer: | Analog Devices, Inc.
|
| Amount: | $2.1 billion
|
| Description: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, MUFG
|
| Co-managers: | BMO Capital Markets Corp., BNY Mellon Capital Markets, LLC, PNC Capital Markets LLC, SMBC Nikko Securities America, Inc., TD Securities (USA) LLC and Wells Fargo Securities, LLC
|
| Junior co-managers: | Deutsche Bank Securities Inc., Fifth Third Securities, Inc. and HSBC Securities (USA) Inc.
|
| Change-of-control put: | 101%
|
| Trade date: | Nov. 30
|
| Settlement date: | Dec. 5
|
| Ratings: | Moody’s: A3
|
| S&P: BBB
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $400 million
|
| Maturity: | Dec. 5, 2021
|
| Coupon: | 2.5%
|
| Spread: | Treasuries plus 75 bps
|
| Price guidance: | Treasuries plus 80 bps area, plus or minus 5 bps
|
|
|
| Seven-year notes
|
| Amount: | $550 million
|
| Maturity: | Dec. 5, 2023
|
| Coupon: | 3.125%
|
| Spread: | Treasuries plus 100 bps
|
| Price guidance: | Treasuries plus 105 bps area, plus or minus 5 bps
|
|
|
| 10-year notes
|
| Amount: | $900 million
|
| Maturity: | Dec. 5, 2026
|
| Coupon: | 3.5%
|
| Spread: | Treasuries plus 120 bps
|
| Price guidance: | Treasuries plus 125 bps area, plus or minus 5 bps
|
|
|
| 30-year notes
|
| Amount: | $250 million
|
| Maturity: | Dec. 5, 2046
|
| Coupon: | 4.5%
|
| Spread: | Treasuries plus 150 bps
|
| Price guidance: | Treasuries plus 155 bps area, plus or minus 5 bps
|
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