Published on 12/8/2021 in the Prospect News Investment Grade Daily.
New Issue: Emerson sells $3 billion of notes in tranches due 2028, 2031, 2051
By Marisa Wong
Los Angeles, Dec. 8 – Emerson Electric Co. priced $3 billion of fixed-rate senior notes in three tranches on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
Emerson priced $1 billion of 2% seven-year notes at 99.779 to yield 2.034%, or a spread of 60 basis points to Treasuries; $1 billion of 2.2% 10-year notes at 99.688 to yield 2.235%, or a spread of 75 bps over Treasuries; and $1 billion of 2.8% 30-year notes at 99.778 to yield 2.811%, or a spread of 100 bps over Treasuries.
The seven-year tranche was talked in the Treasuries plus 80 bps area; the 10-year tranche was talked with a 95 bps area spread; and the 30-year tranche was talked to yield in the 120 bps to 125 bps area over Treasuries, according to a market source.
The notes will have make-whole calls and then par calls. The par call date will be two months prior to maturity for the 2028 notes, three months prior to maturity for the 2031 notes and six months prior to maturity for the 2051 notes.
Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., Barclays, BofA Securities, Inc. and Deutsche Bank Securities Inc. are the joint bookrunners.
Proceeds will be used to pay about $6 billion to shareholders of Aspen Technology, Inc. under an agreement with Aspen, as previously reported.
Emerson is a St. Louis-based technology and engineering company.
| Issuer: | Emerson Electric Co.
|
| Amount: | $3 billion
|
| Issue: | Fixed-rate senior notes
|
| Bookrunners: | Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., Barclays, BofA Securities, Inc., Deutsche Bank Securities Inc.
|
| Co-managers: | BNP Paribas Securities Corp., HSBC Securities (USA) Inc., RBC Capital Markets, LLC, Standard Chartered Bank, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC, Mischler Financial Group, Inc., Stern Brothers & Co.
|
| Pricing date: | Dec. 7
|
| Settlement date: | Dec. 21
|
|
|
| 2028 notes
|
| Amount: | $1 billion
|
| Maturity: | Dec. 21, 2028
|
| Coupon: | 2%
|
| Price: | 99.779
|
| Yield: | 2.034%
|
| Spread: | Treasuries plus 60 bps
|
| Call options: | Make-whole call at Treasuries plus 10 bps prior to Oct. 21, 2028; par call after that
|
| Price talk: | Treasuries plus 80 bps area
|
| Cusip: | 291011BQ6
|
|
|
| 2031 notes
|
| Amount: | $1 billion
|
| Maturity: | Dec. 21, 2031
|
| Coupon: | 2.2%
|
| Price: | 99.688
|
| Yield: | 2.235%
|
| Spread: | Treasuries plus 75 bps
|
| Call options: | Make-whole call at Treasuries plus 15 bps prior to Sept. 21, 2031; par call after that
|
| Price talk: | Treasuries plus 95 bps area
|
| Cusip: | 291011BR4
|
|
|
| 2051 notes
|
| Amount: | $1 billion
|
| Maturity: | Dec. 21, 2051
|
| Coupon: | 2.8%
|
| Price: | 99.778
|
| Yield: | 2.811%
|
| Spread: | Treasuries plus 100 bps
|
| Call option: | Make-whole call at Treasuries plus 15 bps prior to June 21, 2051; par call after that
|
| Price talk: | Treasuries plus 120 bps to 125 bps area
|
| Cusip: | 291011BS2
|
|
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