By Andrea Heisinger
New York, May 3 - Lennox International Inc. sold $200 million 4.9% seven-year senior unsecured notes on Monday to yield Treasuries plus 175 basis points, a source close to the deal said.
This was at the tight end of guidance in the range of 175 bps to 187.5 bps.
The notes (Baa3/BBB-/) priced at 99.922 to yield 4.913%.
They have a make-whole call at Treasuries plus 25 bps and feature a change-of-control put of 101%.
The deal is guaranteed by domestic subsidiaries Lennox Industries Inc., Allied Air Enterprises Inc., Service Experts LLC and Lennox Global Ltd.
Bookrunners were J.P. Morgan Securities Inc. and Wells Fargo Securities. Bank of America Merrill Lynch and Morgan Stanley & Co. Inc. were the senior co-managers.
Co-managers were BBVA Securities Inc., SunTrust Robinson Humphrey Inc., UBS Securities and U.S. Bancorp Investments.
Proceeds are being used for general corporate purposes, including repayment of debt under a revolving credit facility and funding working capital and common stock share repurchases.
The climate control solutions company is based in Richardson, Texas.
| Issuer: | Lennox International Inc.
|
| Issue: | Senior unsecured notes
|
| Guarantors: | Lennox Industries Inc., Allied Air Enterprises Inc., Service Experts LLC, Lennox Global Ltd.
|
| Amount: | $200 million
|
| Maturity: | May 15, 2017
|
| Bookrunners: | J.P. Morgan Securities Inc., Wells Fargo Securities
|
| Senior co-managers: | Bank of America Merrill Lynch, Morgan Stanley & Co. Inc.
|
| Co-managers: | BBVA Securities Inc., SunTrust Robinson Humphrey Inc., UBS Securities, U.S. Bancorp Investments
|
| Coupon: | 4.9%
|
| Price: | 99.922
|
| Yield: | 4.913%
|
| Spread: | Treasuries plus 175 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Change-of-control put: | 101%
|
| Trade date: | May 3
|
| Settlement date: | May 6
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Price talk: | 175 bps to 187.5 bps
|
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