Published on 6/7/2022 in the Prospect News Investment Grade Daily.
New Issue: Allegion prices $600 million 5.411% 10-year senior notes at 245 bps over Treasuries
By Wendy Van Sickle
Columbus, Ohio, June 7 – Allegion US Holding Co. Inc. priced $600 million of 5.411% 10-year senior notes (Baa2/BBB/BBB-) on Tuesday at 99.998 to yield 5.411%, or a spread of 245 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.
Allegion plc will fully and unconditionally guarantee the notes.
Goldman Sachs & Co. LLC, BofA Securities, Inc., J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Citigroup Global Markets Inc. and Wells Fargo Securities LLC are the joint bookrunning managers.
Proceeds, together with cash on hand and additional borrowings under the company’s revolver, will be used to help fund its acquisition of Stanley Access Technologies LLC, a subsidiary of Stanley Black & Decker, Inc.
Allegion is a security products company based in Carmel, Ind.
| Issuer: | Allegion US Holding Co. Inc.
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| Guarantor: | Allegion plc
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| Amount: | $600 million
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| Issue: | Senior notes
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| Maturity: | July 1, 2032
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| Bookrunners: | Goldman Sachs & Co. LLC, BofA Securities, Inc., J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Citigroup Global Markets Inc. and Wells Fargo Securities LLC
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| Co-managers: | Fifth Third Securities, Inc., Huntington Securities, Inc., PNC Capital Markets LLC, TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
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| Trustee: | Wells Fargo Bank, NA
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| Counsel to issuer: | Kirkland & Ellis LLP and Arthur Cox LLP
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| Counsel to underwriters: | Cravath, Swaine & Moore LLP
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| Coupon: | 5.411%
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| Price: | 99.998
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| Yield: | 5.411%
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| Spread: | Treasuries plus 245 bps
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| Call features: | Make-whole call before April 1, 2032 at Treasuries plus 40 bps; thereafter at par
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| Change-of-control put: | 101%
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| Trade date: | June 7
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| Settlement date: | June 22
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| Ratings: | Moody’s: Baa2
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| S&P: BBB
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| Fitch: BBB-
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| Distribution: | SEC registered
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| Cusip: | 01748TAC5
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