By Aleesia Forni
Virginia Beach, April 1 – Molex Electronic Technologies LLC priced a $1 billion issue of senior notes (Baa3/BBB/) on Wednesday in tranches due 2020 and 2025, according to an informed source.
The sale included $500 million of 2.878% five-year notes priced at par with a spread of Treasuries plus 155 basis points.
The notes sold tighter than guidance set in the Treasuries plus 165 bps area. Initial talk was set in the 187.5 bps area over Treasuries.
There was also a $500 million tranche of 3.9% 10-year notes sold at 99.843 to yield 3.919%, or Treasuries plus 205 bps.
Pricing was tighter than the Treasuries plus 215 bps area guidance, which firmed from initial talk set in the 237.5 bps area over Treasuries.
The bookrunners were BofA Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Standard Chartered Bank and SMF Group.
Proceeds will be used to repay debt.
The sale was done via Rule 144A and Regulation S.
Molex is a Lisle, Ill.-based manufacturer and seller of electronic components.
| Issuer: | Molex Electronic Technologies LLC
|
| Issue: | Senior notes
|
| Amount: | $1 billion
|
| Bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Standard Chartered Bank, SMF Group
|
| Trade date: | April 1
|
| Settlement date: | April 7
|
| Ratings: | Moody’s: Baa3
|
| Standard & Poor’s: BBB
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | April 15, 2020
|
| Coupon: | 2.878%
|
| Price: | Par
|
| Yield: | 2.878%
|
| Spread: | 155 bps over Treasuries
|
| Price guidance: | 165 bps area over Treasuries, tightened from 187.5 bps area
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | April 15, 2025
|
| Coupon: | 3.9%
|
| Price: | 99.843
|
| Yield: | 3.919%
|
| Spread: | 205 bps over Treasuries
|
| Price guidance: | 215 bps area over Treasuries, tightened from 237.5 bps area
|
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