General Dynamics has raised $1.5 billion in a three-part sale of notes, The Wall Street Journal reports. The first tranche of $500 million, carrying a coupon rate of 1.375 %, is due to mature in 2015. The second tranche of $500 million, carrying a coupon rate of 2.25%, will mature in 2016.
The third tranche of $500 million, with a rate of 3.87%, is due in 2021. The defense and aerospace contractor intends to use the proceeds for repaying principal on outstanding bonds. Bank of America Merrill Lynch, JP Morgan Chase, Royal Bank of Scotland and Wells Fargo Securities served as the book-runners for the deal.
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