New Issue: Ingersoll-Rand Luxembourg details $1.5 billion notes in three parts

By Devika Patel

Knoxville, Tenn., March 20 – Ingersoll-Rand Luxembourg Finance SA offered further details about a $1.5 billion sale of fixed-rate senior notes (Baa2/BBB) that priced in three tranches on Tuesday, according to an FWP filed with the Securities and Exchange Commission.

The company sold $400 million of 3.5% seven-year notes at a spread of Treasuries plus 100 basis points. These notes priced at 99.895 to yield 3.517%.

A $750 million tranche of 3.8% 10-year notes priced with a 120 bps over Treasuries spread. These notes priced at 99.901 to yield 3.812%.

Ingersoll-Rand Luxembourg sold $350 million of 4.5% 30-year notes at a spread of 150 bps over Treasuries. These notes priced at 99.738 to yield 4.516%.

The notes priced on the tight side of guidance.

BofA Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BNP Paribas Securities Corp., 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 Global Holding Co. Ltd., Ingersoll-Rand Lux International Holding Co Sarl, Ingersoll-Rand Irish Holdings Unlimited Co. and Ingersoll-Rand Co.

Proceeds will be used to finance a $1.45 billion acquisition of Precision Flow Systems and for general corporate purposes.

Ingersoll-Rand is a diversified industrial company based in Dublin, Ireland.

Issuer:	Ingersoll-Rand Luxembourg Finance SA
Guarantors:	Ingersoll-Rand plc, Ingersoll-Rand Global Holding Co. Ltd., Ingersoll-Rand Lux International Holding Co Sarl, Ingersoll-Rand Irish Holdings Unlimited Co. and Ingersoll-Rand Co.
Amount:	$1.5 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:	March 19
Settlement date:	March 21
Ratings:	Moody’s: Baa2
	S&P: BBB
Distribution:	SEC registered
Seven-year notes
Amount:	$400 million
Maturity:	March 21, 2026
Coupon:	3.5%
Price:	99.895
Yield:	3.517%
Spread:	Treasuries plus 100 bps
Call features:	Make-whole call at Treasuries plus 15 bps until Jan. 21, 2026, then a par call; special call at 101 if acquisition of Precision Flow Systems is not completed before Jan. 31, 2020
Price guidance:	Treasuries plus 105 bps area, plus or minus 5 bps; initial talk at Treasuries plus 115 bps area
10-year notes
Amount:	$750 million
Maturity:	March 21, 2029
Coupon:	3.8%
Price:	99.901
Yield:	3.812%
Spread:	Treasuries plus 120 bps
Call features:	Make-whole call at Treasuries plus 20 bps until Dec. 21, 2028, then a par call; special call at 101 if acquisition of Precision Flow Systems is not completed before Jan. 31, 2020
Price guidance:	Treasuries plus 125 bps area, plus or minus 5 bps; initial talk at Treasuries plus 130 bps-135 bps area
30-year notes
Amount:	$350 million
Maturity:	March 21, 2049
Coupon:	4.5%
Price:	99.738
Yield:	4.516%
Spread:	Treasuries plus 150 bps
Call features:	Make-whole call at Treasuries plus 25 bps until Sept. 21, 2048, then a par call; special call at 101 if acquisition of Precision Flow Systems is not completed before Jan. 31, 2020
Price guidance:	Treasuries plus 155 bps area, plus or minus 5 bps; initial talk at Treasuries plus 170 bps area

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