New Issue: Allegion prices $300 million eight-year notes at par to yield 5 7/8%

By Paul A. Harris

Portland, Ore., Sept. 11 – Allegion plc priced a $300 million issue of eight-year senior notes (Ba2/BB+) at par to yield 5 7/8% on Friday, according to a market source.

The yield printed at the tight end of yield talk in the 6% area and inside of initial guidance of 6% to 6¼%, the source said.

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

The Dublin-based provider of security products and solutions plans to use the proceeds to pay down its revolving credit facility.

Issuer:	Allegion plc
Amount:	$300 million
Maturity:	Sept. 15, 2023
Securities:	Senior notes
Bookrunners:	J.P. Morgan Securities LLC, Goldman Sachs & Co., Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, BNP Paribas, Citigroup Global Markets Inc.
Co-managers:	BBVA, Fifth Third Bank, Mizuho Securities, MUFG, PNC Capital Markets, TD Securities, U.S. Bancorp Investments Inc.
Coupon:	5 7/8%
Price:	Par
Yield:	5 7/8%
Spread:	387 bps
Call:	Make-whole call at Treasuries plus 50 bps until Sept. 15, 2018, then callable at 104.406
Equity clawback:	35% at 105.875 until Sept. 15, 2018
Trade date:	Sept. 11
Settlement date:	Sept. 16
Ratings:	Moody's: Ba2
	Standard & Poor's: BB+
Distribution:	SEC registered
Price talk:	6% area
Marketing:	Quick to market

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