Published on 3/4/2016 in the Prospect News Investment Grade Daily.
New Issue: Textron sells $350 million 4% 10-year notes at Treasuries plus 220 bps
By Aleesia Forni
New York, March 4 – Textron Inc. priced $350 million of 4% 10-year senior notes (Baa3/BBB) on Friday at Treasuries plus 220 basis points, according to a market source and an FWP filed with the Securities and Exchange Commission.
Pricing was at 99.242 to yield 4.093%.
The notes sold at the tight side of guidance in the Treasuries plus 225 bps area and inside initial price thoughts in the Treasuries plus mid-200 bps area.
Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were the active bookrunners. Passive bookrunners were BofA Merrill Lynch and MUFG.
Proceeds will be used for general corporate purposes, which may include the redemption or repayment of debt, including the outstanding principal amount of the company’s existing 4.625% notes due 2016.
The multi-industry company has units including aircraft, defense and finance. It is based in Providence, R.I.
| Issuer: | Textron Inc.
|
| Amount: | $350 million
|
| Description: | Senior notes
|
| Maturity: | March 15, 2026
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, MUFG
|
| Senior co-managers: | Goldman Sachs & Co., Morgan Stanley & Co. LLC, SMBC Nikko Securities America Inc., U.S. Bancorp Investments Inc., Wells Fargo Securities LLC
|
| Co-managers: | BNY Mellon Capital Markets LLC, PNC Capital Markets LLC, Williams Capital Group LP
|
| Coupon: | 4%
|
| Price: | 99.242
|
| Yield: | 4.093%
|
| Spread: | Treasuries plus 220 bps
|
| Make-whole call: | Treasuries plus 35 bps prior to Dec. 15, 2025, then callable at par
|
| Trade date: | March 4
|
| Settlement date: | March 11
|
| Ratings: | Moody’s: Baa3
|
| Standard & Poor’s: BBB
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 225 bps area, tightened from Treasuries plus mid-200 bps area
|
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