Allegion plans $1 billion of pro rata loans with $300 million term B

By Sara Rosenberg

New York, Sept. 10 - Allegion U.S. Holding Co. plans on getting a $500 million five-year revolver and a $500 million five-year term loan A in addition to its previously announced $300 million seven-year term loan B, according to a market source.

Price talk on the revolver and term loan is Libor plus 200 basis points, the source said, and the term loan B is talked at Libor plus 275 bps with a 0.75% Libor floor and an original issue discount of 993/4.

Included in the B loan is 101 soft call protection for six months.

J.P. Morgan Securities LLC, Goldman Sachs Bank USA, Bank of America Merrill Lynch, BNP Paribas Securities Corp. and Citigroup Global Markets Inc. are the lead banks on the deal that will launch with a bank meeting at 10:30 a.m. ET in New York on Wednesday.

Proceeds will be used to pay a dividend to Ingersoll Rand in connection with Allegion's spinoff from Ingersoll.

Corporate ratings are expected in the mid-to-high BB area, the source added.

Allegion is a Dublin, Ireland-based provider of security products and solutions.

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