Allegion talks $300 million eight-year notes to yield in 5¾% area

By Paul A. Harris

Portland, Ore., Sept. 26 - Allegion US Holding Co. talked its $300 million offering of eight-year senior notes (expected ratings Ba2/BB+) to yield in the 5¾% area on Thursday, according to a market source.

The deal is set to price on Friday.

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 spin-off 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 and an indirect, wholly owned subsidiary of Ingersoll-Rand plc.

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