By Cristal Cody
Tupelo, Miss., Feb. 27 – Rockwell Automation, Inc. priced a $1 billion two-tranche offering of senior notes (A3/A/A) on Wednesday, according to a market source.
A $425 million tranche of 3.5% 10-year notes priced at a spread of 85 basis points over Treasuries.
Rockwell Automation also sold $575 million of 4.2% 30-year notes at a Treasuries plus 115 bps spread.
Both tranches priced on the tight side of guidance.
BofA Merrill Lynch, Goldman Sachs & Co. LLC and Wells Fargo Securities, LLC were the bookrunners.
Proceeds will be used to repay outstanding commercial paper and for general corporate purposes.
The industrial automation and information company is based in Milwaukee.
| Issuer: | Rockwell Automation, Inc.
|
| Amount: | $1 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, Goldman Sachs & Co. LLC and Wells Fargo Securities, LLC
|
| Trade date: | Feb. 27
|
| Ratings: | Moody’s: A3
|
| S&P: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $425 million
|
| Maturity: | March 1, 2029
|
| Coupon: | 3.5%
|
| Spread: | Treasuries plus 85 bps
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 90 bps area, plus or minus 5 bps; initial talk at Treasuries plus 110 bps area
|
|
|
| 30-year notes
|
| Amount: | $575 million
|
| Maturity: | March 1, 2049
|
| Coupon: | 4.2%
|
| Spread: | Treasuries plus 115 bps
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 120 bps area, plus or minus 5 bps; initial talk at Treasuries plus 140 bps area
|
© 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.
