By Aleesia Forni
Virginia Beach, May 18 – Siemens AG priced $7.75 billion of senior notes (A1/A+/) on Monday in six parts through its Siemens Financieringsmaatschappij NV unit, according to an informed source.
The company priced $1.25 billion of 1.45% notes due 2018 at 99.98 to yield 1.457%, or Treasuries plus 50 basis points.
The notes sold at the tight end of guidance set in the Treasuries plus 55 bps area, tightened from initial talk set in the Treasuries plus 65 bps area.
A $500 million floating-rate note due 2018 priced at par to yield Libor plus 28 bps.
The notes were guided at the three-year note’s Libor equivalent.
The company also priced $1 billion of 2.15% notes due 2020 at Treasuries plus 65 bps. Pricing was at 99.868 to yield 2.178%.
Guidance was set in the Treasuries plus 70 bps area after having tightened from initial talk in the Treasuries plus 80 bps area.
There was $1.75 billion of 2.9% notes due 2022 priced at par with a spread of Treasuries plus 95 bps.
Pricing was at the tight end of the Treasuries plus 100 bps area guidance. Initial talk was set in the Treasuries plus 105 bps area.
Siemens also sold $1.5 billion of 3.25% notes due 2025 at 99.746 to yield 3.28%, or Treasuries plus 105 bps.
Guidance was set in the Treasuries plus 110 bps area after having tightened from initial talk set in the Treasuries plus 120 bps area.
Finally, $1.75 billion of 4.4% notes due 2045 sold at 99.258 to yield 4.445%, or Treasuries plus 140 bps.
Pricing was at the tight end of the Treasuries plus 145 bps area guidance. Initial talk was set in the range of Treasuries plus 155 bps to 160 bps.
Proceeds will be used for general corporate purposes, including the company’s acquisition of Dresser-Rand Group Inc.
The bookrunners were Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC.
The sale was done via Rule 144A and Regulation S without registration rights.
The unit of engineering and electronics conglomerate Siemens AG provides capital for infrastructure and equipment as well as working capital for the company and its subsidiaries and is based in the Hague, the Netherlands.
| Issuer: | Siemens Financieringsmaatschappij NV
|
| Guarantor: | Siemens AG
|
| Issue: | Notes
|
| Amount: | $7.75 billion
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC
|
| Trade date: | May 18
|
| Settlement date: | May 27
|
| Ratings: | Moody’s: A1
|
| Standard & Poor’s: A+
|
| Distribution: | Rule 144A, Regulation S without registration rights
|
|
|
| Three-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | May 25, 2018
|
| Coupon: | 1.45%
|
| Price: | 99.98
|
| Yield: | 1.457%
|
| Spread: | Treasuries plus 50 bps
|
| Price guidance: | Treasuries plus 55 bps area, tightened from 65 bps area
|
|
|
| Three-year floaters
|
| Amount: | $500 million
|
| Maturity: | May 25, 2018
|
| Coupon: | Libor plus 28 bps
|
| Price: | Par
|
| Yield: | Libor plus 28 bps
|
| Price guidance: | Libor equivalent of three-year fixed-rate notes
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | May 27, 2020
|
| Coupon: | 2.15%
|
| Price: | 99.868
|
| Yield: | 2.178%
|
| Spread: | Treasuries plus 65 bps
|
| Price guidance: | Treasuries plus 70 bps area, tightened from 80 bps area
|
|
|
| Seven-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | May 27, 2022
|
| Coupon: | 2.9%
|
| Price: | Par
|
| Yield: | 2.9%
|
| Spread: | Treasuries plus 95 bps
|
| Price guidance: | Treasuries plus 100 bps area, tightened from 105 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | May 27, 2025
|
| Coupon: | 3.25%
|
| Price: | 99.746
|
| Yield: | 3.28%
|
| Spread: | Treasuries plus 105 bps
|
| Price guidance: | Treasuries plus 110 bps area, tightened from 120 bps area
|
|
|
| 30-year bonds
|
| Amount: | $1.75 billion
|
| Maturity: | May 27, 2045
|
| Coupon: | 4.4%
|
| Price: | 99.258
|
| Yield: | 4.445%
|
| Spread: | Treasuries plus 140 bps
|
| Price guidance: | Treasuries plus 145 bps area, tightened from 155 bps to 160 bps
|
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