Siemens $7.75 billion multi-tranche Yankee bond issue

Overview:

• Siemens issued a $7.75 billion Yankee senior unsecured notes, in what was the largest bond the company has ever sold and it first issue in nine years in the States.  
• Proceeds from the bond issue were used to fund the company's $7.8 billion acquisition of Dresser-Rand Group.
• The Germany based engineering conglomerate issued the bonds in six tranches with maturities of three, five, seven, 10, and 30 years. 
• The three year bond had two tranches, one of $500 million floating rate notes (3 month US dollar libor) and one of $1.25 billion notes with a 1.45% coupon.
• The other tranches were all fixed rate.
• The five-year tranche's volume was $1 billion with a coupon of 2.15%.
• The seven year tranche's volume was $1.75 billion with a coupon of 2.9%.
• The 10 year tranche's volume was $1.5 billion with a coupon of 3.25%.
• The 30 year tranche's volume was $1.75 billion with a coupon of 4.4%. 
• The initial purchasers were led by Barclays Capital, Citigroup Global Markets, Deutsche Bank, Goldman Sachs, and JPMorgan.

Ben Naylor -  Regional Editor