Published on 9/19/2013 in the Prospect News Investment Grade Daily.
New Issue: Cummins sells $1 billion issue of 10-, 30-year notes in two tranches
By Aleesia Forni
Virginia Beach, Va., Sept. 19 - Cummins Inc. sold a two-part $1 billion issue of senior notes (A3/A/A) on Thursday, according to a filing with the Securities and Exchange Commission.
The deal included $500 million 3.65% 10-year notes priced with a spread of Treasuries plus 97 basis points.
Cummins sold the notes at 99.402 to yield 3.722%.
There was also $500 million of 4.875% 30-year notes sold at Treasuries plus 117 bps, or 97.869 to yield 5.013%.
Goldman Sachs & Co., BofA Merrill Lynch, J.P. Morgan Securities LLC, HSBC Securities (USA) Inc. and RBS Securities Inc. were the joint bookrunners.
Proceeds from the offering will be used for the planned acquisitions of the equity that the company does not already own in most of its partially owned U.S. and Canadian distributors, as well as for general corporate purposes.
Cummins is a Columbus, Ind.-based company that designs, manufactures, distributes and services diesel and natural gas engines and engine-related component products.
| Issuer: | Cummins Inc.
|
| Issue: | Senior notes
|
| Amount: | $1 billion
|
| Bookrunners: | Goldman Sachs & Co., BofA Merrill Lynch, J.P. Morgan Securities LLC, HSBC Securities (USA) Inc., RBS Securities Inc.
|
| Co-managers: | ING Financial Markets LLC, U.S. Bancorp Investments, | Inc., ANZ Securities, | Inc., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Mitsubishi UFJ Securities (USA), | Inc., PNC Capital Markets LLC, Santander Investment Securities Inc., Scotia Capital (USA) Inc., Standard Chartered Bank, Williams Capital Group, L.P., Wells Fargo Securities, LLC
|
| Trade date: | Sept. 19
|
| Settlement date: | Sept. 24
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A
|
| Fitch: A
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Oct. 1, 2023
|
| Coupon: | 3.65%
|
| Price: | 99.402
|
| Yield: | 3.722%
|
| Spread: | Treasuries plus 97 bps
|
| Make-whole call: | Treasuries plus 15 bps, callable at par on or after July 1, 2023
|
|
|
| 30-year bond
|
| Amount: | $500 million
|
| Maturity: | Oct. 1, 2043
|
| Coupon: | 4.875%
|
| Price: | 97.869
|
| Yield: | 5.013%
|
| Spread: | Treasuries plus 117 bps
|
| Make-whole call: | Treasuries plus 20 bps, callable at par on or after April 1, 2043
|
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