By Cristal Cody
Tupelo, Miss., Feb. 13 – Ingersoll-Rand Global Holding Co. Ltd. priced $1.15 billion of senior notes (Baa2/BBB) in three tranches on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company sold $300 million of 2.9% three-year notes at 99.838 to yield 2.957%. The notes priced in line with talk at a spread of Treasuries plus 65 basis points.
The $550 million tranche of 3.75% long 10-year notes priced at 99.751 to yield 3.779%. The notes came on the tight side of guidance with a Treasuries plus 95 bps spread.
In the final tranche, Ingersoll-Rand sold $300 million of 4.3% 30-year notes with a Treasuries plus 120 bps spread, on the tight side of talk. The bonds priced at 99.649 to yield 4.321%.
Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BofA Merrill Lynch, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Mizuho Securities USA Inc. and MUFG were the bookrunners.
The notes are guaranteed by Ingersoll-Rand plc, Ingersoll-Rand Luxembourg Finance SA, Ingersoll-Rand Lux International Holding Co Sarl, Ingersoll-Rand Irish Holdings Unlimited Co. and Ingersoll-Rand Co.
Proceeds will be used for general corporate purposes, including the full redemption of the company’s 6.875% notes and 2.875% notes.
The diversified industrial company is based in Swords, Ireland.
| Issuer: | Ingersoll-Rand Global Holding Co. Ltd.
|
| Guarantors: | Ingersoll-Rand plc, Ingersoll-Rand Luxembourg Finance SA, Ingersoll-Rand Lux International Holding Co. Sarl, Ingersoll-Rand Irish Holdings Unlimited Co. and Ingersoll-Rand Co.
|
| Amount: | $1.15 billion
|
| Description: | Senior notes
|
| Bookrunners: | Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BofA Merrill Lynch, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Mizuho Securities USA Inc. and MUFG
|
| Trade date: | Feb. 13
|
| Settlement date: | Feb. 21
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
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| Amount: | $300 million
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| Maturity: | Feb. 21, 2021
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| Coupon: | 2.9%
|
| Price: | 99.838
|
| Yield: | 2.957%
|
| Spread: | Treasuries plus 65 bps
|
| Call features: | Make-whole call at greater of par and Treasuries plus 10 bps
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 65 bps area
|
|
|
| 10-year notes
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| Amount: | $550 million
|
| Maturity: | Aug. 21, 2028
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| Coupon: | 3.75%
|
| Price: | 99.751
|
| Yield: | 3.779%
|
| Spread: | Treasuries plus 95 bps
|
| Call features: | Make-whole call at greater of par and Treasuries plus 15 bps; on or after May 21, 2028 at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 100 bps area
|
|
|
| 30-year notes
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| Amount: | $300 million
|
| Maturity: | Feb. 21, 2048
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| Coupon: | 4.3%
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| Price: | 99.649
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| Yield: | 4.321%
|
| Spread: | Treasuries plus 120 bps
|
| Call features: | Make-whole call at greater of par and Treasuries plus 20 bps; on or after Aug. 21, 2047 at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 125 bps area
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