By Susanna Moon
Chicago, May 22 - United Technologies Corp. said it accepted all $874 principal amount of notes tendered by the early deadline of the offers for three series of notes.
The company accepted tenders for $673.4 million of its $1 billion of 1.2% senior notes due 2015, as well as $102.9 million of the $290,753,000 outstanding 6.29% senior notes due 2016 and $97.7 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 press release.
Holders could tender notes by 5 p.m. ET on May 21, the early tender date, in order to receive the total purchase price. The early deadline was originally set at 5 p.m. ET on May 20.
Tendered notes may no longer be withdrawn, as of the original early deadline.
As noted before, holders had tendered $673.4 million of the 1.2% notes, $102.9 million of the 6.29% notes and $97.5 million of the 6.125% notes by the original early tender date.
The company also dropped the tender offer cap on the 1.2% notes on May 21. Originally, the company offered to purchase any and all of the notes issued by Goodrich in 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 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 offers
| 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
|
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