By Aleesia Forni
New York, Nov. 16 – Lockheed Martin Corp. priced a $7 billion six-tranche offering of senior notes (Baa1/BBB+/BBB+) on Monday, according to a market source.
A $750 million 1.85% tranche of three-year notes sold at 99.829 to yield 1.909%, or Treasuries plus 72 basis points.
Pricing came at the tightest side of the Treasuries plus 75 bps area guidance and tighter than the Treasuries plus 95 bps area talk.
A $1.25 billion 2.5% tranche of five-year notes sold at 99.641 to yield 2.577% with a spread of Treasuries plus 92 bps.
Guidance was set in the Treasuries plus 95 bps area, having tightened from talk in the Treasuries plus 115 bps area.
And $500 million of 3.1% notes due Jan. 15, 2023 priced with a 117 bps spread over Treasuries. The note sold at 99.361 to yield 3.2%.
The notes were guided in the Treasuries plus 120 bps area. Initially, talk was in the Treasuries plus 140 bps area.
A $2 billion 3.55% tranche of 10-year notes sold at 99.228 to yield 3.641%, or Treasuries plus 137 bps.
Pricing was at the tight end of the Treasuries plus 140 bps area guidance. Talk was tightened from the Treasuries plus 160 bps area.
Also, $500 million of 4.5% notes due 2036 sold at 98.124 to yield 4.643% with a spread of Treasuries plus 157 bps.
Price guidance was set in the Treasuries plus 160 bps area following talk in the Treasuries plus 180 bps area.
Finally, $2 billion of 4.7% notes due 2046 sold at 98.519 with a yield of 4.793%. The notes sold at Treasuries plus 172 bps.
Pricing was at the tight end of the Treasuries plus 175 bps area guidance, having firmed from the Treasuries plus 195 bps area.
Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BofA Merrill Lynch, Credit Agricole, Mizuho Securities and Wells Fargo Securities LLC are the bookrunners.
Proceeds will be used to repay the $6 billion of borrowings under a 364-day revolving credit facility used to help fund the acquisition of Sikorsky Aircraft Corp. and for general corporate purposes.
The global security company is based in Bethesda, Md.
| Issuer: | Lockheed Martin Corp.
|
| Issue: | Senior notes
|
| Amount: | $7 billion
|
| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BofA Merrill Lynch, Credit Agricole, Mizuho Securities and Wells Fargo Securities LLC
|
| Trade date: | Nov. 16
|
| Settlement date: | Nov. 23
|
| Ratings: | Moody’s: Baa1
|
| Standard & Poor’s: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Notes due 2018
|
| Amount: | $750 million
|
| Maturity: | Nov. 23, 2018
|
| Coupon: | 1.85%
|
| Price: | 99.829
|
| Yield: | 1.909%
|
| Spread: | Treasuries plus 72 bps
|
| Price guidance: | Treasuries plus 75 bps area, tightened from Treasuries plus 95 bps area
|
|
|
| Notes due 2020
|
| Amount: | $1.25 billion
|
| Maturity: | Nov. 23, 2020
|
| Coupon: | 2.5%
|
| Price: | 99.641
|
| Yield: | 2.577%
|
| Spread: | Treasuries plus 92 bps
|
| Price guidance: | Treasuries plus 95 bps area, tightened from Treasuries plus 115 bps area
|
|
|
| Notes due 2023
|
| Amount: | $500 million
|
| Maturity: | Jan. 15, 2023
|
| Coupon: | 3.1%
|
| Price: | 99.361
|
| Yield: | 3.2%
|
| Spread: | Treasuries plus 117 bps
|
| Price guidance: | Treasuries plus 120 bps area, tightened from Treasuries plus 140 bps area
|
|
|
| Notes due 2026
|
| Amount: | $2 billion
|
| Maturity: | Jan. 15, 2026
|
| Coupon: | 3.55%
|
| Price: | 99.228
|
| Yield: | 3.641%
|
| Spread: | Treasuries plus 137 bps
|
| Price guidance: | Treasuries plus 140 bps area, tightened from Treasuries plus 160 bps area
|
|
|
| Notes due 2036
|
| Amount: | $500 million
|
| Maturity: | May 15, 2036
|
| Coupon: | 4.5%
|
| Price: | 98.124
|
| Yield: | 4.643%
|
| Spread: | Treasuries plus 157 bps
|
| Price guidance: | Treasuries plus 160 bps area, tightened from Treasuries plus 180 bps area
|
|
|
| Notes due 2046
|
| Amount: | $2 billion
|
| Maturity: | May 15, 2046
|
| Coupon: | 4.7%
|
| Price: | 98.519
|
| Yield: | 4.793%
|
| Spread: | Treasuries plus 172 bps
|
| Price guidance: | Treasuries plus 175 bps area, tightened from Treasuries plus 195 bps area
|
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