New Issue: Analog Devices details $2.1 billion notes due 2021, 2023, 2026, 2046

By Devika Patel

Knoxville, Tenn., Dec. 1 – Analog Devices, Inc. gave further details about a $2.1 billion four-part sale of senior notes (A3/BBB) in an FWP filed Thursday with the Securities and Exchange Commission. The offering priced on Wednesday.

The company priced $400 million of 2.5% five-year notes with a spread of 75 basis points over Treasuries at 99.594 to yield 2.587%. These notes have a make whole call at Treasuries plus 12.5 bps until Nov. 5, 2021 and then a par call.

The $550 million tranche of 3.125% seven-year notes priced at a 100 bps spread over Treasuries at 99.639 to yield 3.183%. These notes have a make whole call at Treasuries plus 15 bps until Oct. 5, 2023 and then a par call.

Analog Devices placed $900 million of 3.5% 10-year notes with a spread of 120 bps over Treasuries at 99.366 to yield 3.576%. These notes have a make whole call at Treasuries plus 20 bps until Sept. 5, 2026 and then a par call.

The $250 million tranche of 4.5% 30-year notes were sold at a spread of Treasuries plus 150 bps at 99.348 to yield 4.55%. These notes have a make whole call at Treasuries plus 25 bps until June 5, 2036 and then a par call.

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% for all of the notes except the 2026 notes.

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.
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%
Price:	99.594
Yield:	2.587%
Spread:	Treasuries plus 75 bps
Price guidance:	Treasuries plus 80 bps area, plus or minus 5 bps
Call feature:	Make whole call at Treasuries plus 12.5 bps until Nov. 5, 2021 and then a par call
Change-of-control put:	101%
Seven-year notes
Amount:	$550 million
Maturity:	Dec. 5, 2023
Coupon:	3.125%
Price:	99.639
Yield:	3.183%
Spread:	Treasuries plus 100 bps
Price guidance:	Treasuries plus 105 bps area, plus or minus 5 bps
Call feature:	Make whole call at Treasuries plus 15 bps until Oct. 5, 2023 and then a par call
Change-of-control put:	101%
10-year notes
Amount:	$900 million
Maturity:	Dec. 5, 2026
Coupon:	3.5%
Price:	99.366
Yield:	3.576%
Spread:	Treasuries plus 120 bps
Price guidance:	Treasuries plus 125 bps area, plus or minus 5 bps
Call feature:	Make whole call at Treasuries plus 20 bps until Sept. 5, 2026 and then a par call
30-year notes
Amount:	$250 million
Maturity:	Dec. 5, 2046
Coupon:	4.5%
Price:	99.348
Yield:	4.55%
Spread:	Treasuries plus 150 bps
Price guidance:	Treasuries plus 155 bps area, plus or minus 5 bps
Call feature:	Make whole call at Treasuries plus 25 bps until June 5, 2036 and then a par call
Change-of-control put:	101%

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