Published on 5/18/2015 in the Prospect News Investment Grade Daily.
New Issue: Emerson Electric sells $1 billion of senior notes due 2021, 2025
By Aleesia Forni
Virginia Beach, May 18 – Emerson Electric Co. was in Monday’s market with a $1 billion sale of senior notes (A2/A/A) due 2021 and 2025, according to a market source and a FWP filing with the Securities and Exchange Commission.
The company’s sale included $500 million of 2.625% notes due Dec. 1, 2021 priced at 99.94 to yield 2.635%, or Treasuries plus 110 basis points.
A second tranche was $500 million of 3.15% notes due June 1, 2025 priced at 99.684 to yield 3.187%, or Treasuries plus 95 bps.
The bookrunners were J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Barclays, BNP Paribas Securities Corp. and HSBC Securities.
Proceeds will be used for general corporate purposes including repayment of commercial paper borrowings.
The engineering company is based in Ferguson, Mo.
| Issuer: | Emerson Electric Co.
|
| Issue: | Senior notes
|
| Amount: | $1 billion
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| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Barclays, BNP Paribas Securities Corp., HSBC Securities
|
| Senior co-managers: | BofA Merrill Lynch, Wells Fargo Securities LLC
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| Co-managers: | RBC Capital Markets, LLC, MUFG, SMBC Nikko Securities America, Inc., U.S. Bancorp Investments, Inc.
|
| Trade date: | May 18
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| Settlement date: | May 21
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| Ratings: | Moody’s: A2
|
| Standard & Poor’s: A
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| Fitch: A
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| Distribution: | SEC-registered
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|
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| Notes due 2021
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| Amount: | $500 million
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| Maturity: | Dec. 1, 2021
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| Coupon: | 2.625%
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| Price: | 99.94
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| Yield: | 2.635%
|
| Spread: | Treasuries plus 110 bps
|
| Price guidance: | Treasuries plus 115 bps area, tightened from Treasuries plus 115 bps to 120 bps
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| Make-whole call: | Treasuries plus 15 bps prior to Nov. 1, 2021, then callable at par
|
|
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| Notes due 2025
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| Amount: | $500 million
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| Maturity: | June 1, 2025
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| Coupon: | 3.15%
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| Price: | 99.684
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| Yield: | 3.187%
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| Spread: | Treasuries plus 95 bps
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| Price guidance: | Treasuries plus 100 bps area, tightened from Treasuries plus 110 bps area
|
| Make-whole call: | Treasuries plus 15 bps prior to March 1, 2025, then callable at par
|
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