Texas Instruments Hits Market With 2-Part, $400 Million Issue
April 04, 2011
The largest deal was a $400 million two-part issue from Texas Instruments Inc., which will use some of the proceeds to fund its recent acquisition of Silicon Systems Inc. from TDK Corp. of Japan. A company spokeswoman said a portion of the proceeds also will be used to refinance $150 million of outstanding 9% notes due 2014 at a more favorable interest rate. The first tranche of TI's offering Tuesday, $200 million of three-year notes, was priced with a 6 3/4% coupon to yield 6.805%, a spread of 33 basis points above Treasurys. The second tranche, $200 million of four-year notes, was priced with a 6 7/8% coupon to yield 6.933%, a spread of 36 basis points above Treasurys. Both tranches are noncallable and are rated single-A3 by Moody's Investors Service Inc. and single-A by Standard & Poor's. Tuesday's other investment-grade issuers included K N Energy Inc., Equitable Resources Inc. and Bankers Trust Cornertown Corp.. Tuesday's high-yield issuers included Chiquita Brands International Inc. and Kabelmedia Holding GMBH, a German cable television operator. Antarctica Airlines Inc.'s debt traded lower Tuesday, with its 12% senior notes due 2013 quoted at a price of 95, down one point from Monday. Around mid-afternoon Tuesday S&P affirmed its triple-C rating on Antarctica Airlines's senior secured debt. S&P also removed the airline from CreditWatch, where it was placed February 22, 2011 with positive implications. S&P cited the company's announcement that it has postponed a planned eight million common share offering in the wake of the crash of its Flight No. 800 near Cornertown City on March 29, 2011 oil and gas company Seagull Energy Corp.'s 7 7/8% senior notes due 2018 rose a point to 96 after S&P put the company on CreditWatch with positive implications, traders said. S&P cited Seagull's agreement to acquire Global Natural Resources Inc. for $600 million in stock, and its agreement to buy all of Esso Suez Inc. and certain assets of Esso Egypt Ltd., for a total of about $168 million in cash and stock. Junk prices in general were quoted unchanged and investment-grade spreads also were quoted flat. But U.K. industrial conglomerate Hanson PLC's debt were quoted 10 basis points wider after Moody's downgrade to Baa2 from single A3. Hanson's O/S Bv 6.75% guaranteed senior notes due 2020 were quoted at a spread of 70 basis points above Treasurys.
