The company sold $250 million of 1.7 percent, five-year bonds that yield 95 basis points more than similar-maturity Treasuries and an equal amount of 3.15 percent, 10-year securities with a 130 basis-point spread, according to data compiled by Bloomberg. Proceeds will be used to repay debt, including its $350 million of 5.625 percent securities due this month, the El Segundo, California-based company said today in a regulatory filing.
The offering “appears very attractive to us,” Joscelyn MacKay, an analyst at Chicago-based Morningstar Inc. (MORN), wrote today in a report. Fair value may be a spread of about 100 to 110 basis points for the 10-year portion and about 25 to 35 basis points less than that level for the five-year debt, she said.
The new bonds are expected to be rated Baa1 by Moody’s Investors Service.
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