By Andrea Heisinger
New York, Sept. 6 - Lockheed Martin Corp. sold $2 billion of notes (Baa1/A-/) in three tranches on Tuesday, an informed source said.
A $500 million tranche of 2.125% five-year notes was priced at 99.924 to yield 2.141% with a spread of Treasuries plus 127 basis points. The notes were priced at the low end of guidance, which was in the 130 bps area.
The tranche has a make-whole call at Treasuries plus 20 bps.
A $900 million tranche of 3.35% 10-year notes priced at 99.73 to yield 3.382% with a spread of 142 bps over Treasuries. The tranche was sold at the tight end of talk in the 145 bps area.
The 10-year notes are callable at a make-whole amount of 25 bps over Treasuries.
A third part was $600 million of 4.85% 30-year bonds priced at 99.279 to yield 4.896% with a spread of Treasuries plus 167 bps. The bonds were sold at the low end of guidance, which was in the 170 bps area.
The bonds have a make-whole call at 25 bps over Treasuries.
Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were the active bookrunners. Passive bookrunners were Bank of America Merrill Lynch and Wells Fargo Securities LLC.
Proceeds will be used to redeem $500 million of 4.121% notes due 2013 and for general corporate purposes.
Lockheed Martin last priced bonds in a $1.5 billion deal on Nov. 13, 2009. The 4.25% 10-year notes from that sale sold at 93 bps over Treasuries while a 5.5% 30-year tranche priced at 120 bps over Treasuries.
The global security company is based in Bethesda, Md.
| Issuer: | Lockheed Martin Corp.
|
| Issue: | Notes
|
| Amount: | $2 billion
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC (active), Bank of America Merrill Lynch, Wells Fargo Securities LLC (passive)
|
| Trade date: | Sept. 6
|
| Settlement date: | Sept. 9
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: A-
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | Sept. 15, 2016
|
| Coupon: | 2.125%
|
| Price: | 99.924
|
| Yield: | 2.141%
|
| Spread: | Treasuries plus 127 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Price talk: | 130 bps area
|
|
|
| 10-year notes
|
| Amount: | $900 million
|
| Maturity: | Sept. 15, 2021
|
| Coupon: | 3.35%
|
| Price: | 99.73
|
| Yield: | 3.382%
|
| Spread: | Treasuries plus 142 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 145 bps area
|
|
|
| 30-year bonds
|
| Amount: | $600 million
|
| Maturity: | Sept. 15, 2041
|
| Coupon: | 4.85%
|
| Price: | 99.279
|
| Yield: | 4.896%
|
| Spread: | Treasuries plus 167 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 170 bps area
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
