Published on 11/2/2021 in the Prospect News Investment Grade Daily.
New Issue: Raytheon prices $2.1 billion of 2.375%, 3.03% notes in two tranches
By Devika Patel
Knoxville, Tenn., Nov. 2 – Raytheon Technologies Corp. priced $2.1 billion of notes (Baa1/A-) in two parts on Monday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $1 billion of 2.375% notes due March 15, 2032 at 99.983 to yield 2.377% with a spread of 80 basis points over Treasuries.
These notes were talked in the Treasuries plus 95 bps area.
Raytheon priced $1.1 billion of 3.03% notes due March 15, 2052 at 105 bps over Treasuries. These notes were priced at 99.963 to yield 3.032%.
The 2052 notes were talked in the Treasuries plus 120 bps area.
BNP Paribas Securities Corp., BofA Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC were the joint bookrunners.
Proceeds will be used to fund a capped tender offer for up to $2.1 billion that Raytheon started for 14 series of notes on Monday. Any remaining proceeds may be used for general corporate purposes, which may include working capital, capital expenditures, acquisitions of or investments in businesses or assets and redemption and repayment of short-term or long-term borrowings.
The aerospace and defense company is based in Waltham, Mass.
| Issuer: | Raytheon Technologies Corp.
|
| Amount: | $2.1 billion
|
| Description: | Notes
|
| Bookrunners: | BNP Paribas Securities Corp., BofA Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC
|
| Senior co-managers: | Barclays, Credit Agricole CIB, Mizuho Securities USA Inc., MUFG, RBC Capital Markets LLC, SMBC Nikko Securities America Inc., UniCredit Capital Markets LLC and Wells Fargo Securities LLC
|
| Co-managers: | Academy Securities Inc., Blaylock Van, LLC, CastleOak Securities LP, Mischler Financial Group Inc., R. Seelaus & Co. Inc. and Siebert Williams Shank & Co. LLC
|
| Trade date: | Nov. 1
|
| Settlement date: | Nov. 16
|
| Ratings: | Moody’s: Baa1
|
| S&P: A-
|
| Distribution: | SEC registered
|
|
|
| 2032 notes
|
| Amount: | $1 billion
|
| Maturity: | March 15, 2032
|
| Coupon: | 2.375%
|
| Price: | 99.983
|
| Yield: | 2.377%
|
| Spread: | Treasuries plus 80 bps
|
| Call feature: | Make whole call at Treasuries plus 15 bps until Dec. 15, 2031, then a par call
|
| Guidance: | Treasuries plus 95 bps area
|
| Cusip: | 75513ECN9
|
|
|
| 2052 notes
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| Amount: | $1.1 billion
|
| Maturity: | March 15, 2052
|
| Coupon: | 3.03%
|
| Price: | 99.963
|
| Yield: | 3.032%
|
| Spread: | Treasuries plus 105 bps
|
| Call feature: | Make whole call at Treasuries plus 20 bps until Sept. 15, 2051, then a par call
|
| Guidance: | Treasuries plus 120 bps area
|
| Cusip: | 75513ECP4
|
|
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