Published on 10/19/2022 in the Prospect News Investment Grade Daily.
New Issue: Lockheed Martin prices $4 billion five-part offering of senior notes
By Wendy Van Sickle
Columbus, Ohio, Oct. 19 – Lockheed Martin Corp. priced a $4 billion five-tranche offering of senior notes (A3/A-/A-) on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
A $500 million tranche of 4.95% three-year notes sold at 99.715 to yield 5.055%, or Treasuries plus 50 basis points.
A $750 million tranche of 5.1% five-year notes sold at 99.833 to yield 5.137% with a spread of Treasuries plus 80 bps.
And $1 billion of 5.25% notes due Jan. 15, 2033 priced with a 120 bps spread over Treasuries. The note sold at 99.438 to yield 5.323%.
A $1 billion tranche of 5.7% notes due Nov. 15, 2054 sold at 99.18 to yield 5.756%, or Treasuries plus 160 bps.
Also, $750 million of 5.9% notes due Nov. 15, 2063 sold at 99.139 to yield 5.956% with a spread of 180 bps over Treasuries.
Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Mizuho Securities USA LLC and Wells Fargo Securities, LLC are the bookrunners.
Senior joint lead managers are Barclays, BNY Mellon Capital Markets, LLC, RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, UniCredit Capital Markets LLC and U.S. Bancorp Investments, Inc. Joint lead managers are Lloyds Securities Inc. and PNC Capital Markets LLC.
Proceeds from the offering will be used for general corporate purposes, including the repurchase of shares of common stock under the company’s share repurchase program.
The global security company is based in Bethesda, Md.
| Issuer: | Lockheed Martin Corp.
|
| Amount: | $4 billion
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| Issue: | Senior notes
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| Bookrunners: | Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Mizuho Securities USA LLC and Wells Fargo Securities, LLC
|
| Senior joint lead managers: | Barclays, BNY Mellon Capital Markets, LLC, RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, UniCredit Capital Markets LLC and U.S. Bancorp Investments, Inc.
|
| Joint lead managers: | Lloyds Securities Inc. and PNC Capital Markets LLC
|
| Senior co-managers: | ANZ Securities, Inc. and Fifth Third Securities, Inc.
|
| Co-managers: | Academy Securities, Inc., AmeriVet Securities, Inc., Blaylock Van, LLC, CastleOak Securities, LP, MFR Securities, Inc., Mischler Financial Group, Inc., Penserra Securities LLC and Samuel A. Ramirez & Co., Inc.
|
| Trustee: | U.S. Bank Trust Co., NA
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| Counsel to issuer: | Hogan Lovells US LLP
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| Counsel to underwriters: | Davis Polk & Wardwell LLP
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| Trade date: | Oct. 19
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| Settlement date: | Oct. 24
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| Ratings: | Moody’s: A3
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| S&P: A-
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| Fitch: A-
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| Distribution: | SEC registered
|
|
|
| Notes due 2025
|
| Amount: | $500 million
|
| Maturity: | Oct. 15, 2025
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| Coupon: | 4.95%
|
| Price: | 99.715
|
| Yield: | 5.055%
|
| Spread: | Treasuries plus 50 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps until Sept. 25, 2025, then a par call
|
| Cusip: | 539830BU2
|
|
|
| Notes due 2027
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| Amount: | $750 million
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| Maturity: | Nov. 15, 2027
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| Coupon: | 5.1%
|
| Price: | 99.833
|
| Yield: | 5.137%
|
| Spread: | Treasuries plus 80 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps until Oct. 15, 2027, then a par call
|
| Cusip: | 539830BV0
|
|
|
| Notes due 2033
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| Amount: | $1 billion
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| Maturity: | Jan. 15, 2033
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| Coupon: | 5.25%
|
| Price: | 99.438
|
| Yield: | 5.323%
|
| Spread: | Treasuries plus 120 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps until Oct. 15, 2032, then a par call
|
| Cusip: | 539830BW8
|
|
|
| Notes due 2054
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| Amount: | $1 billion
|
| Maturity: | Nov. 15, 2054
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| Coupon: | 5.7%
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| Price: | 99.18
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| Yield: | 5.756%
|
| Spread: | Treasuries plus 160 bps
|
| Call: | Make-whole call at Treasuries plus 25 bps until May 15, 2054, then a par call
|
| Cusip: | 539830BX6
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|
|
| Notes due 2063
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| Amount: | $750 million
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| Maturity: | Nov. 15, 2063
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| Coupon: | 5.9%
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| Price: | 99.139
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| Yield: | 5.956%
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| Spread: | Treasuries plus 180 bps
|
| Call: | Make-whole call at Treasuries plus 30 bps until May 15, 2063, then a par call
|
| Cusip: | 539830BY4
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