Published on 2/12/2015 in the Prospect News Investment Grade Daily.
New Issue: Lockheed Martin prices $2.25 billion of notes in three tranches
By Aleesia Forni
Virginia Beach, Feb. 12 – Lockheed Martin Corp. priced $2.25 billion of senior notes (Baa1/A-/A-) in three tranches on Thursday, according to a market source and an FWP filed with the Securities and Exchange Commission.
A $750 million tranche of 2.9% 10-year notes sold at 99.714 to yield 2.933%, or Treasuries plus 95 basis points.
Pricing was at the tight end of the Treasuries plus 100 bps area talk, which had tightened from earlier guidance set in the 115 bps area over Treasuries.
There was also $500 million of 3.6% bonds due 2035 priced at 99.138 to yield 3.661%, or 110 bps over Treasuries.
Pricing was at the tight end of talk set in the 115 bps area. Guidance was set in the 125 bps area over Treasuries.
Finally, $1 billion of 3.8% 30-year bonds sold at 130 bps over Treasuries. The notes sold at 98.92 to yield 3.861%.
The notes priced at the tight end of the 135 bps area talk, which had firmed from guidance set at 145 bps to 150 bps over Treasuries.
Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BofA Merrill Lynch, Citigroup Global Markets Inc. and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes.
The global security company is based in Bethesda, Md.
| Issuer: | Lockheed Martin Corp.
|
| Issue: | Senior notes
|
| Amount: | $2.25 billion
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BofA Merrill Lynch, Citigroup Global Markets Inc., Wells Fargo Securities LLC
|
| Senior co-managers: | ANZ Securities, Inc., Barclays, Credit Agricole Securities (USA) Inc., Lloyds Securities Inc., MUFG, Mizuho Securities USA Inc., RBC Capital Markets, LLC, RBS Securities Inc., SMBC Nikko Securities America, Inc., U.S. Bancorp Investments Inc.
|
| Co-managers: | Drexel Hamilton, LLC, Lebenthal & Co., LLC, Loop Capital Markets LLC, Williams Capital Group LP
|
| Trade date: | Feb. 12
|
| Settlement date: | Feb. 20
|
| Ratings: | Moody’s: Baa1
|
| Standard & Poor’s: A-
|
| Fitch: A-
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | March 1, 2025
|
| Coupon: | 2.9%
|
| Price: | 99.714
|
| Yield: | 2.933%
|
| Spread: | 95 bps
|
| Price talk: | 100 bps area, tightened from 115 bps area
|
| Make-whole call: | 15 bps prior to Dec. 1, 2024, then callable at par
|
|
|
| 20-year notes
|
| Amount: | $500 million
|
| Maturity: | March 1, 2035
|
| Coupon: | 3.6%
|
| Price: | 99.138
|
| Yield: | 3.661%
|
| Spread: | 110 bps
|
| Price talk: | 115 bps area, tightened from 125 bps area
|
| Make-whole call: | 20 bps prior to Sept. 1, 2034, then callable at par
|
|
|
| 30-year bonds
|
| Amount: | $1 billion
|
| Maturity: | March 1, 2045
|
| Coupon: | 3.8%
|
| Price: | 98.92
|
| Yield: | 3.861%
|
| Spread: | 130 bps
|
| Price talk: | 135 bps area, tightened from 145 bps to 150 bps
|
| Make-whole call: | 20 bps prior to Sept. 1, 2044, then callable at par
|
© 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.
