By Cristal Cody
Eureka Springs, Ark., Nov. 29 – L-3 Communications Corp. sold $550 million of 3.85% 10-year senior notes (Baa3/BBB-/BBB-) with a spread of 160 basis points over Treasuries on Tuesday, according to a market source and a news release from parent company L-3 Communications Holdings, Inc.
The notes were talked to price at Treasuries plus 165 bps, plus or minus 2.5 bps, in from initial price thoughts of Treasuries plus 185 bps.
BofA Merrill Lynch, Barclays, Deutsche Bank Securities Inc., MUFG, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were the bookrunners.
The securities have a make-whole call until three months before maturity and then a par call, according to a 424B5 filing with the Securities and Exchange Commission.
Proceeds will be used to replenish the amount of cash used and the amount of revolving credit borrowings drawn, to repay $200 million of 3.95% senior notes that matured on Nov. 15, 2016 and to redeem all of the company’s $350 million 1.5% senior notes due 2017.
L-3 Communications is a New York-based provider of communication and electronic systems and products used on military and commercial platforms, as well as a contractor in aerospace systems.
| Issuer: | L-3 Communications Corp.
|
| Amount: | $550 million
|
| Description: | Senior notes
|
| Maturity: | Dec. 15, 2026
|
| Bookrunners: | BofA Merrill Lynch, Barclays, Deutsche Bank Securities Inc., MUFG, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc., Wells Fargo Securities LLC
|
| Coupon: | 3.85%
|
| Spread: | Treasuries plus 160 bps
|
| Call: | Make-whole call until three month before maturity; par call thereafter
|
| Trade date: | Nov. 29
|
| Settlement date: | Dec. 5
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 165 bps area, plus or minus 2.5 bps; initial price guidance at Treasuries plus 185 bps
|
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