US aerospace and defence contractor Raytheon is in the market with a US$1.1bn senior unsecured bond offering.
The notes, which mature November 2022, carry a coupon of 2.5% and priced at 99.691 to yield 2.535%, a spread of 90 basis points over US…
US aerospace and defence contractor Raytheon is in the market with a US$1.1bn senior unsecured bond offering.
The notes, which mature November 2022, carry a coupon of 2.5% and priced at 99.691 to yield 2.535%, a spread of 90 basis points over US Treasuries. Raytheon plans to issue the notes as a drawdown from its existing shelf registration.
Net proceeds are predominantly to be used to fund the redemption of Raytheon’s US$575m outstanding of 1.4% notes due December 2014 and the US$400m outstanding of 1.625% notes due October 2015.
Credit Suisse, JP Morgan, Citigroup, BofA Merrill Lynch and UBS are joint book-running managers on the financing, which is due to close on 4 December.
The debt is rated A- by Standard & Poor’s, A3 by Moody’s and A- by Fitch.
Over the past two years, Raytheon’s total debt has more than doubled through a series of bond issuances, from US$2.3bn in September 2010 to approximately US$4.7bn in September 2012. The bulk of this additional debt, around US$1.5bn, has been used to tackle the company’s sizeable pension deficit.
