Allegion starts roadshow for $300 million eight-year senior notes

By Paul A. Harris

Portland, Ore., Sept. 23 - Allegion US Holding Co. began a roadshow on Monday for a $300 million offering of eight-year senior notes (expected ratings Ba2/BB+), according to a market source.

The Rule 144A with registration rights deal is expected to price on Thursday.

Goldman Sachs & Co., J.P. Morgan Securities LLC, BNP Paribas, BofA Merrill Lynch, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC are the joint bookrunners.

The notes come with three years of call protection.

Proceeds, along with a $1.5 billion credit facility, will be used to pay a special cash distribution to the company prior to the proposed spinoff of its commercial and residential security businesses, and for general corporate purposes.

In a change to the planned financing, the company downsized the bond portion by $200 million, to $300 million from $500 million, and upsized its term loan by the same amount, to $500 million from $300 million.

Allegion is a Swords, Ireland-based provider of security products and solutions, an indirect, wholly owned subsidiary of Ingersoll-Rand plc.

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