By Cristal Cody
Tupelo, Miss., March 13 – Pentair plc subsidiary nVent Finance Sarl priced $800 million of senior notes (BBB-/BBB) in five- and 10-year tranches on Monday, according to market sources and a news release.
nVent sold $300 million of 3.95% senior notes due April 15, 2023 on top of guidance at a spread of 135 basis points over Treasuries.
The company placed $500 million of 4.55% senior notes due April 15, 2028 in line with price talk at Treasuries plus 170 bps.
BofA Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC were the bookrunners of the Rule 144A and Regulation S transaction.
Pentair said the deal came in connection with its planned spinoff of nVent Electric plc. nVent Finance will become a subsidiary of nVent Electric under the spinoff.
The notes are guaranteed on an unsecured and unsubordinated basis by nVent Electric and initially guaranteed on an unsecured and unsubordinated basis by Pentair and subsidiary Pentair Investments Switzerland GmbH.
The Pentair and Pentair Investments guarantees will terminate upon completion of the spinoff, which is expected by April 30.
Proceeds from the offering will be used to make payments to Pentair as partial consideration for the assets of the electrical business in connection with the separation and for general corporate purposes.
Pentair is a Minneapolis-based water, fluid, thermal management and equipment industrial company. nVent Electric is an electrical solution company based in Minneapolis.
| Issuer: | nVent Finance Sarl
|
| Guarantors: | nVent Electric and initially by Pentair plc and Pentair Investments Switzerland GmbH
|
| Amount: | $800 million
|
| Description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC
|
| Trade date: | March 12
|
| Settlement date: | March 26
|
| Ratings: | S&P: BBB-
|
| Fitch: BBB
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Five-year notes
|
| Amount: | $300 million
|
| Maturity: | April 15, 2023
|
| Coupon: | 3.95%
|
| Spread: | Treasuries plus 135 bps
|
| Price guidance: | Treasuries plus 135 bps
|
|
|
| 10-year notes
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| Amount: | $500 million
|
| Maturity: | April 15, 2028
|
| Coupon: | 4.55%
|
| Spread: | Treasuries plus 170 bps
|
| Price guidance: | Treasuries plus 170 bps
|
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