By Lisa Kerner
Charlotte, N.C., June 2 – Franklin Electric Co., Inc. issued $75 million of floating-rate senior notes, series A, due 2025 on May 27 under a $150 million shelf agreement with NYL Investors LLC, New York Life Insurance Co. and New York Life Insurance and Annuity Corp., according to an 8-K filing with the Securities and Exchange Commission.
Proceeds will be used for general corporate purposes, including the repayment of existing debt.
The notes have a make-whole call at Treasuries plus 50 basis points.
The company paid a 0.15% issuance fee.
The shelf agreement has a three-year issuance period ending May 27, 2018.
The term of each note issuance under the shelf will be no more than 12 years for fixed-rate notes and 10 years for floating-rate notes.
The shelf covenants include a maximum leverage ratio of 3.5 to 1.0 and a minimum interest coverage ratio of 3.0 to 1.0.
Franklin Electric is a Bluffton, Ind.-based provider of water and fueling systems.
| Issuer: | Franklin Electric Co., Inc.
|
| Issue: | Senior notes, series A
|
| Amount: | $75 million
|
| Coupon: | Floating rate
|
| Maturity: | May 27, 2025
|
| Call option: | Make-whole at Treasuries plus 50 bps
|
| Settlement date: | May 27
|
| Distribution: | Private placement
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
