Published on 5/15/2020 in the Prospect News Investment Grade Daily.
New Issue: Lockheed Martin prices $1.15 billion of fixed-rate notes in two parts
By Cristal Cody
Tupelo, Miss., May 15 – Lockheed Martin Corp. priced $1.15 billion of fixed-rate notes (A3/A-/A-) in two tranches on Friday, according to an FWP filed with the Securities and Exchange Commission.
A $400 million offering of 1.85% 10-year notes priced at 99.78 to yield 1.874%, or a spread of Treasuries plus 125 basis points.
Lockheed Martin sold $750 million of 2.8% 30-year notes at 99.133 to yield 2.843%, or Treasuries plus 155 bps.
Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc. and J.P. Morgan Securities LLC were the bookrunners.
The Bethesda, Md.-based security and aerospace company plans to use the proceeds from the offering to redeem a portion of its $900 million of 3.35% notes due Sept. 15, 2021 and to repay a portion of its $1.25 billion of 2.5% notes at or prior to maturity on Nov. 23, 2020.
| Issuer: | Lockheed Martin Corp.
|
| Amount: | $1.15 billion
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| Description: | Senior notes
|
| Bookrunners: | Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc. and J.P. Morgan Securities LLC
|
| Lead managers: | Goldman Sachs & Co. LLC, SMBC Nikko Securities America, Inc., TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
|
| Senior co-managers: | ANZ Securities, Inc., Barclays, Lloyds Securities Inc., RBC Capital Markets, LLC, UniCredit Capital Markets LLC and Wells Fargo Securities, LLC
|
| Co-managers: | Academy Securities, Inc., Blaylock Van, LLC, C.L. King & Associates, Inc., Drexel Hamilton, LLC, Mischler Financial Group, Inc., Penserra Securities LLC, R. Seelaus & Co., LLC and Siebert Williams Shank & Co., LLC
|
| Trade date: | May 15
|
| Settlement date: | May 20
|
| Ratings: | Moody’s: A3
|
| S&P: A-
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| Fitch: A-
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
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| Amount: | $400 million
|
| Maturity: | June 15, 2030
|
| Coupon: | 1.85%
|
| Price: | 99.78
|
| Yield: | 1.874%
|
| Spread: | Treasuries plus 125 bps
|
| Call features: | Make-whole call before March 15, 2030 at greater of par and Treasuries plus 20 bps; thereafter at par
|
|
|
| 30-year notes
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| Amount: | $750 million
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| Maturity: | June 15, 2050
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| Coupon: | 2.8%
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| Price: | 99.133
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| Yield: | 2.843%
|
| Spread: | Treasuries plus 155 bps
|
| Call features: | Make-whole call before Dec. 15, 2049 at greater of par and Treasuries plus 25 bps; thereafter at par
|
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