By Andrea Heisinger
New York, July 23 - Boeing Co. priced an upsized $1.95 billion of senior notes (A2/A+/A+) in three tranches Thursday, an informed source said.
The size was originally announced at $1.5 billion, and increased soon after, a source said.
The $750 million of 3.5% notes due 2015 priced at a spread of Treasuries plus 110 basis points, selling at 99.157 to yield 3.669%. The tranche came at the tight end of talk for a spread of Treasuries plus 115 bps.
The $750 million of 4.875% notes due 2020 priced at a spread of Treasuries plus 130 bps, coming to market at 98.958 to yield 5.003%. The 2020 notes also came at the tight end of talk, in this case Treasuries [plus 135 bps.
A $450 million tranche of 5.875% notes due 2040 were sold at a spread of Treasuries plus 145 bps, pricing at 97.68 to yield 6.042%. This tranche was also at the tight end of talk, for a spread of 150 bps.
All three tranches have a make-whole redemption provision at Treasuries plus 25 bps.
Bookrunners were Banc of America Merrill Lynch, Deutsche Bank Securities and Morgan Stanley & Co. Inc.
Co-managers were Barclays Capital, BNP Paribas Securities, Calyon Securities, Credit Suisse Securities, Daiwa Securities Americas, Mitsubishi UFJ Securities, Mizuho Securities, RBS Securities and Wells Fargo Securities.
Proceeds are going for general corporate purposes including repayment of debt, acquisitions, working capital additions, capital expenditures, pension funding, funding subsidiaries and the repurchase of stock. They may also be used to purchase the assets and operations of Vought Aircraft Industries Inc.'s 787 business.
The aerospace firm is based in Chicago.
| Issuer: | Boeing Co.
|
| Issue: | Senior notes
|
| Amount: | $1.95 billion, increased from $1.5 billion
|
| Bookrunners: | Banc of America Merrill Lynch, Deutsche Bank Securities, Morgan Stanley & Co. Inc.
|
| Co-managers: | Barclays Capital, BNP Paribas Securities, Calyon Securities, Credit Suisse Securities, Daiwa Securities Americas, Mitsubishi UFJ Securities, Mizuho Securities, RBS Securities, Wells Fargo Securities
|
| Trade date: | July 23
|
| Settlement date: | July 28
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A+
|
| Fitch: A+
|
|
|
| Notes due 2015
|
| Amount: | $750 million
|
| Maturity: | Feb. 15, 2015
|
| Coupon: | 3.5%
|
| Price: | 99.157
|
| Yield: | 3.669%
|
| Spread: | Treasuries plus 110 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 115 bps
|
|
|
| Notes due 2020
|
| Amount: | $750 million
|
| Maturity: | Feb. 15, 2020
|
| Coupon: | 4.875%
|
| Price: | 98.958
|
| Yield: | 5.003%
|
| Spread: | Treasuries plus 130 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 135 bps
|
|
|
| Notes due 2040
|
| Amount: | $450 million
|
| Maturity: | Feb. 15, 2040
|
| Coupon: | 5.875%
|
| Price: | 97.68
|
| Yield: | 6.042%
|
| Spread: | Treasuries plus 145 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 150 bps
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
