By Marisa Wong and Cristal Cody
Los Angeles, June 28 – Pentair Finance Sarl priced $400 million of 5.9% senior notes due 2032 at 97.813 to yield 6.196%, according to an FWP filing with the Securities and Exchange Commission.
The notes priced with a spread of 300 basis points over Treasuries. Pricing was directly on top of talk in the 300 bps area, according to a market source.
J.P. Morgan Securities LLC, BofA Securities Inc., Citigroup Global Markets Inc., MUFG and U.S. Bancorp Investments, Inc. are the joint bookrunners.
Proceeds will be used to finance Pentair Commercial Ice LLC’s planned acquisition of Welbilt, Inc.’s Manitowoc Ice business for $1.6 billion.
If the acquisition is not completed by Jan. 14, 2023, the company must redeem the notes.
The notes also feature a make-whole call and then a par call.
The notes are guaranteed by Pentair plc.
Pentair is a Minneapolis-based company mostly providing equipment related to water.
| Issuer: | Pentair Finance Sarl
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| Guarantor: | Pentair plc
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| Amount: | $400 million
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| Issue: | Senior notes
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| Maturity: | July 15, 2032
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| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities Inc., Citigroup Global Markets Inc., MUFG and U.S. Bancorp Investments, Inc.
|
| Senior co-managers: | Wells Fargo Securities, LLC, PNC Capital Markets LLC and BMO Capital Markets Corp.
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| Co-managers: | BBVA Securities Inc. and Loop Capital Markets LLC
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| Trustee: | U.S. Bank Trust Co., NA
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| Counsel to issuer: | Foley & Lardner LLP, Arthur Cox LLP and Allen & Overy Luxembourg
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| Counsel to underwriters: | Cravath, Swaine & Moore LLP
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| Coupon: | 5.9%
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| Price: | 97.813
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| Yield: | 6.196%
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| Spread: | Treasuries plus 300 bps
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| Call features: | Make-whole call at Treasuries plus 45 bps at any time prior to April 15, 2032; par call after that; tax call at par; mandatory redemption at 101 if Manitowoc Ice acquisition not completed by Jan. 14, 2023
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| Pricing date: | June 28
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| Settlement date: | July 8
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| Distribution: | SEC registered
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| Cusip: | 709629AS8
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| Price talk: | Treasuries plus 300 bps area
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