By Andrea Heisinger
New York, May 25 - Cameron International Corp. sold an upsized $750 million of senior notes (Baa1/BBB+/) in three tranches on Wednesday, said a source away from the deal.
There was a $250 million tranche of three-year floating-rate notes added to the deal at the launch. The notes priced at par to yield three-month Libor plus 93 basis points.
A $250 million tranche of 4.5% 10-year notes was sold at 99.151 to yield 4.607% with a spread of Treasuries plus 148 basis points. The notes were priced at the low end of guidance in the 150 bps area.
A $250 million tranche of 5.95% 30-year bonds was priced at 99.972 to yield 5.952%, or 168 bps over Treasuries. The bonds were sold at the tight end of talk, which was in the 170 bps area.
Each of the fixed-rate tranches has a make-whole call at Treasuries plus 25 bps.
J.P. Morgan Securities LLC and Morgan Stanley & Co., Inc. were the active bookrunners.
Passive bookrunners were Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and RBS Securities Inc.
Proceeds are being used to pay for convertible notes purchased through a put option and to fund the purchase or redemption of convertibles remaining following the expiration of the put option. Any remainder will be used for general corporate purposes.
The oil and gas pressure control and compression company is based in Houston.
| Issuer: | Cameron International Corp.
|
| Issue: | Senior notes
|
| Amount: | $750 million, increased from $500 million
|
| Bookrunners: | J.P. Morgan Securities LLC, Morgan Stanley & Co., Inc. (active), Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, RBS Securities Inc. (passive)
|
| Trade date: | May 25
|
| Settlement date: | June 2
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
|
|
| Three-year floaters
|
| Amount: | $250 million
|
| Maturity: | June 2, 2014
|
| Coupon: | Three-month Libor plus 93 bps
|
| Price: | Par
|
| Yield: | Three-month Libor plus 93 bps
|
| Call: | Non-callable
|
|
|
| 10-year notes
|
| Amount: | $250 million
|
| Maturity: | June 1, 2021
|
| Coupon: | 4.5%
|
| Price: | 99.151
|
| Yield: | 4.607%
|
| Spread: | Treasuries plus 148 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 150 bps area
|
|
|
| 30-year bonds
|
| Amount: | $250 million
|
| Maturity: | June 2, 2041
|
| Coupon: | 5.95%
|
| Price: | 99.972
|
| Yield: | 5.952%
|
| Spread: | Treasuries plus 168 bps
|
| Call: | 170 bps area
|
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