By Susanna Moon
Chicago, May 21 - United Technologies Corp. said holders tendered $673.4 million of its $1 billion of 1.2% senior notes due 2015 as of 5 p.m. ET on May 20.
Investors also tendered $102.9 million of the $290,753,000 outstanding 6.29% senior notes due 2016 and $97.5 million of the $300 million 6.125% senior notes due 2019 issued by Goodrich Corp., now a wholly owned subsidiary of the company.
According to a company news release, United has extended the early tender time to May 21 at 5 p.m. ET. The early deadline had previously been announced as 5 p.m. ET on May 20.
The company also dropped the tender offer cap on the 1.2% notes, according to the release. Originally, the company offered to purchase any and all of the notes issued by Goodrich in the one tender offer and up to $500 million of the 1.2% notes in a separate tender offer.
The offers will continue to run until 11:59 p.m. ET on June 4. They began May 7.
The withdrawal deadline was not extended, and tendered notes may no longer be withdrawn, as of 5 p.m. ET on May 20.
The prices are noted in the table below. They include a $50.00 early tender premium for each $1,000 principal amount of notes tendered by the early tender time.
Holders will also receive accrued interest up to but excluding the settlement date.
As noted before, pricing was set using a fixed spread over the yield to maturity of the reference Treasury note.
United Technologies will fund the tender offers with cash on hand.
United Technologies said it plans to begin redemption of 1.2% notes remaining after the early tender time, with pricing to be set later. The company previously said it planned to redeem an amount of 1.2% notes so that the sum of the total principal amount of 1.2% notes redeemed and the total principal amount of all 6.29% notes, 6.125% notes and 1.2% notes accepted for purchase in the tender offers is about $1 billion.
No tender offer is conditioned on any of the other offers or on any minimum principal amount of notes of any series being tendered.
The lead dealer manager is Goldman Sachs & Co. (800 828-3182 or 212 357-0215). The co-dealer managers are Banca IMI Securities Corp., Barclays, BNP Paribas Securities Corp., BNY Mellon Capital Markets, LLC and RBC Capital Markets, LLC. The tender agent and information agent is D.F. King & Co., Inc. (banks and brokers call 212 269-5550; others call 800 967-4604).
United Technologies is based in Hartford, Conn., and provides high-technology products and services to the building and aerospace industries. It does not guarantee the Goodrich notes.
United Technologies tender offer
| Notes | Reference Treasury | Fixed spread | Total consideration
|
| 6.29% notes due 2016 | 0.25% Treasury due April 15, 2016 | 40 bps | $1,168.77
|
| 6.125% notes due 2019 | 0.625% Treasury due April 30, 2018 | 72 bps | $1,251.64
|
| 1.2% notes due 2015 | 0.125% Treasury due April 30, 2015 | 12.5 bps | $1,016.79
|
© 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.
