Published on 5/23/2023 in the Prospect News Investment Grade Daily.
New Issue: Lockheed Martin sells $2 billion of notes due 2028, 2034, 2055
By Wendy Van Sickle
Columbus, Ohio, May 23 – Lockheed Martin Corp. priced $2 billion of notes in three parts on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $500 million of 4.45% five-year notes at 99.82 to yield 4.491%. The spread was 75 basis points over Treasuries.
The middle tranche priced as $850 million of 4.75% notes due 2034 with a 99.674 discount to yield 4.79%, or Treasuries plus 110 bps.
The $650 million tranche due Feb. 15, 2055 priced as 5.2% notes at 99.24 to yield 5.25%. The spread over the benchmark Treasury was 130 bps.
Citigroup Global Markets Inc., Barclays, Credit Agricole Securities (USA) Inc., BofA Securities Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC were the bookrunners.
Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC were the senior joint lead managers.
Joint lead managers are BNY Mellon Capital Markets, LLC, Lloyds Securities Inc., PNC Capital Markets LLC, RBC Capital Markets, LLC, TD Securities (USA) LLC, UniCredit Capital Markets LLC and U.S. Bancorp Investments, Inc.
The Bethesda, Md.-based security and aerospace company plans to use the proceeds for general corporate purposes.
| Issuer: | Lockheed Martin Corp.
|
| Amount: | $2 billion
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| Issue: | Notes
|
| Bookrunners: | Citigroup Global Markets Inc., Barclays, Credit Agricole Securities (USA) Inc., BofA Securities Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC
|
| Senior joint lead managers: | Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC
|
| Joint lead managers: | BNY Mellon Capital Markets, LLC, Lloyds Securities Inc., PNC Capital Markets LLC, RBC Capital Markets, LLC, TD Securities (USA) LLC, UniCredit Capital Markets LLC and U.S. Bancorp Investments, Inc.
|
| Senior co-managers: | ANZ Securities, Inc. and Fifth Third Securities, Inc.
|
| Co-managers: | Academy Securities, Inc., Bancroft Capital, LLC, Cabrera Capital Markets LLC, CastleOak Securities, LP, Mischler Financial Group, Inc., Penserra Securities LLC, R. Seelaus & Co., LLC and Siebert Williams Shank & Co., LLC
|
| Trustee: | U.S. Bank Trust Co., NA
|
| Counsel to issuer: | Hogan Lovells US LLP
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| Counsel to underwriters: | Davis Polk & Wardwell LLP
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| Trade date: | May 23
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| Settlement date: | May 25
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| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Fitch: A-
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| Distribution: | SEC registered
|
|
|
| 2028 notes
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| Amount: | $500 million
|
| Maturity: | May 15, 2028
|
| Coupon: | 4.45%
|
| Price: | 99.82
|
| Yield: | 4.491%
|
| Spread: | Treasuries plus 75 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps until April 15, 2028; thereafter at par
|
| Cusip: | 539830BZ1
|
|
|
| 2034 notes
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| Amount: | $850 million
|
| Maturity: | Feb. 15, 2034
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| Coupon: | 4.75%
|
| Price: | 99.674
|
| Yield: | 4.79%
|
| Spread: | Treasuries plus 110 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps until Nov. 15, 2033; thereafter at par
|
| Cusip: | 539830CA5
|
|
|
| 2055 notes
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| Amount: | $650 million
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| Maturity: | Feb. 15, 2055
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| Coupon: | 5.2%
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| Price: | 99.24
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| Yield: | 5.25%
|
| Spread: | Treasuries plus 130 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps until Aug. 15, 2054; thereafter at par
|
| Cusip: | 539830CB3
|
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