By Aleesia Forni
Virginia Beach, Sept. 9 – Tyco International Finance SA sold $1.5 billion of senior notes (A3/BBB+/A-) on Wednesday in 10.5-year and 30-year tranches, according to a market source.
A $750 million 3.9% note due Feb. 14, 2026 was issued at a price of 99.284 to yield 3.985%.
The tranche sold at Treasuries plus 180 bps, at the tight end of guidance set in the Treasuries plus 185 bps area after having tightened from the Treasuries plus 200 bps area talk.
Also, $750 million of 5.125% notes due Sept. 14, 2045 priced at 99.469 to yield 5.16%, or Treasuries plus 220 bps.
The notes sold at the tight end of the Treasuries plus 225 bps area guidance and were initially talked in the Treasuries plus 240 bps area.
Bookrunners are Deutsche Bank Securities Inc., Goldman Sachs & Co. and Morgan Stanley & Co. LLC.
The company intends to use the net proceeds from the sale to fund the redemption price of the $364.3 million outstanding 8.5% notes due 2019 that were previously called for redemption and for general corporate purposes
Tyco International is a Cork, Ireland-based security systems company.
| Issuer: | Tyco International Finance SA
|
| Issue: | Senior notes
|
| Amount: | $1.5 billion
|
| Bookrunners: | Deutsche Bank Securities Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC
|
| Trade date: | Sept. 9
|
| Settlement date: | Sept. 14
|
| Ratings: | Moody’s: A3
|
| Standard & Poor’s: BBB+
|
| Fitch: A-
|
| Distribution: | SEC registered
|
|
|
| 10.5-year notes
|
| Amount: | $750 million
|
| Maturity: | Feb. 14, 2026
|
| Coupon: | 3.9%
|
| Price: | 99.284
|
| Yield: | 3.985%
|
| Spread: | Treasuries plus 180 bps
|
| Price guidance: | Treasuries plus 185 bps area, tightened from Treasuries plus 200 bps area
|
| Make-whole call: | Treasuries plus 30 bps
|
|
|
| 30-year bonds
|
| Amount: | $750 million
|
| Maturity: | Sept. 14, 2045
|
| Coupon: | 5.125%
|
| Price: | 99.469
|
| Yield: | 5.16%
|
| Spread: | Treasuries plus 220 bps
|
| Price guidance: | Treasuries plus 225 bps area, tightened from Treasuries plus 240 bps area
|
| Make-whole call: | Treasuries plus 35 bps
|
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