By Aleesia Forni
Virginia Beach, Oct. 6 – Keysight Technologies Inc. sold $1.1 billion of senior notes (Baa3/BBB-/BBB) in five- and 10-year tranches on Monday, a market source said.
The sale included $500 million of 3.3% five-year notes priced at Treasuries plus 162.5 basis points, or 99.902 to yield 3.321%.
A second tranche was $600 million of 4.55% 10-year notes priced with a spread of Treasuries plus 212.5 bps. The notes sold at 99.966 to yield 4.554%.
Both tranches sold at the tight end of price talk.
Citigroup Global Markets Inc., Goldman Sachs & Co., BofA Merrill Lynch, Barclays, BNP Paribas Securities Corp. and Credit Suisse Securities (USA) LLC were the bookrunners.
The notes sold via Rule 144A and Regulation S.
Proceeds will be used to make a cash distribution to Agilent Technologies, Inc., of which Keysight is a wholly owned subsidiary, and to fund working capital and other liquidity needs.
The notes will initially will be guaranteed by Agilent, which will terminate upon the earliest to occur of the completion of Keysight’s previously announced separation from Agilent, Agilent ceasing to beneficially own a majority of Keysight’s common stock and the consummation of a legal defeasance or covenant defeasance or discharge of the indenture relating to the notes.
Keysight is a Santa Rosa, Calif.-based electronic measurement technology company.
| Issuer: | Keysight Technologies Inc.
|
| Guarantor: | Agilent Technologies Inc.
|
| Issue: | Senior notes
|
| Amount: | $1.1 billion
|
| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co., BofA Merrill Lynch, Barclays, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC
|
| Co-managers: | Deutsche Bank Securities Inc., RBS Securities Inc., Wells Fargo Securities, LLC
|
| Trade date: | Oct. 6
|
| Settlement date: | Oct. 15
|
| Ratings: | Moody’s: Baa3
|
| Standard & Poor’s: BBB-
|
| Fitch: BBB
|
| Distribution: | Rule 144A, Regulation S, with registration rights
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | Oct. 30, 2019
|
| Coupon: | 3.3%
|
| Price: | 99.902
|
| Yield: | 3.321%
|
| Spread: | Treasuries plus 162.5 bps
|
| Price talk: | Treasuries plus 162.5 bps to 175 bps
|
| Change-of-control put: | At 101%
|
| Make-whole call: | Treasuries plus 25 bps prior to Sept. 30, 2019, then callable at par
|
|
|
| 10-year notes
|
| Amount: | $600 million
|
| Maturity: | Oct. 30, 2024
|
| Coupon: | 4.55%
|
| Price: | 99.966
|
| Yield: | 4.554%
|
| Spread: | Treasuries plus 212.5 bps
|
| Price talk: | Treasuries plus 212.5 bps to 225 bps
|
| Change-of-control put: | At 101%
|
| Make-whole call: | Treasuries plus 35 bps prior to July 30, 2024, then callable at par
|
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