By Andrea Heisinger
New York, May 2 - Pentair, Inc. sold an upsized $500 million of 5% 10-year notes Monday at Treasuries plus 175 basis points, said a source close to the deal.
The size was increased from $400 million.
The notes (Baa3/BBB-/) sold at 99.804 to yield 5.025%.
Merrill Lynch and U.S. Bancorp Securities were the active bookrunners. J.P. Morgan Securities LLC was a passive bookrunner.
Proceeds will be used to finance a part of the Clean Process Technology unit from Norit Holding BV for about $700 million and pay for related fees and expenses.
The deal features a change-of-control put at 101% if the acquisition is not done by July 31. The notes are guaranteed by domestic subsidiaries of Pentair.
The industrial manufacturing company is based in Minneapolis.
| Issuer: | Pentair, Inc.
|
| Guarantor: | Domestic subsidiaries
|
| Issue: | Senior notes
|
| Amount: | $500 million, increased from $400 million
|
| Maturity: | May 15, 2021
|
| Bookrunners: | Merrill Lynch and U.S. Bancorp Securities (active), J.P. Morgan Securities LLC (passive)
|
| Coupon: | 5%
|
| Price: | 99.804
|
| Yield: | 5.025%
|
| Spread: | Treasuries plus 175 bps
|
| Change-of-control put: | 101% if acquisition is not completed by July 31
|
| Trade date: | May 2
|
| Settlement date: | May 5
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
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