By Aleesia Forni
Virginia Beach, July 28 – Tyco Electronics Group SA priced $1 billion of senior notes (Baa1/A-/A-) in three tranches on Monday, according to a market source.
The sale included $500 million of floating-rate notes due 2016 priced at par to yield Libor plus 20 basis points.
Pricing was on top of talk.
A second tranche was $250 million of 2.35% five-year notes priced at 99.948 to yield 2.361%, or Treasuries plus 65 bps.
Finally, $250 million of 3.45% 10-year notes priced at 99.614 to yield 3.496%, or Treasuries plus 100 bps.
Both fixed-rate tranches sold at the tight end of talk.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, BNP Paribas Securities Corp. and Deutsche Bank Securities Inc. were the bookrunners.
Proceeds will be used for general corporate purposes, which may include funding a portion of the company’s merger with Measurement Specialties, Inc.
The notes will be fully and unconditionally guaranteed by TE Connectivity Ltd.
Tyco is a Luxembourg maker of electronic components.
| Issuer: | Tyco Electronics Group SA
|
| Guarantor: | TE Connectivity Ltd.
|
| Issue: | Senior notes
|
| Amount: | $1 billion
|
| Active bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC
|
| Passive bookrunners: | BofA Merrill Lynch, BNP Paribas Securities Corp. and Deutsche Bank Securities Inc.
|
| Trade date: | July 28
|
| Settlement date: | July 31
|
| Ratings: | Moody’s: Baa1
|
| Standard & Poor’s: A-
|
| Fitch: A-
|
| Distribution: | SEC-registered
|
|
|
| 18-month floaters
|
| Amount: | $500 million
|
| Maturity: | Jan. 29, 2016
|
| Coupon: | Libor plus 20 bps
|
| Price: | Par
|
| Yield: | Libor plus 20 bps
|
| Price talk: | Libor plus 20 bps
|
|
|
| Five-year notes
|
| Amount: | $250 million
|
| Maturity: | Aug. 1, 2019
|
| Coupon: | 2.35%
|
| Price: | 99.948
|
| Yield: | 2.361%
|
| Spread: | Treasuries plus 65 bps
|
| Price talk: | Treasuries plus 70 bps area
|
|
|
| 10-year notes
|
| Amount: | $250 million
|
| Maturity: | Aug. 1, 2024
|
| Coupon: | 3.45%
|
| Price: | 99.614
|
| Yield: | 3.496%
|
| Spread: | Treasuries plus 100 bps
|
| Price talk: | Treasuries plus 105 bps area
|
|
|
|
|
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