By Aleesia Forni
Virginia Beach, Sept. 9 – Pentair Finance SA priced $1.15 billion of senior notes (Baa3/BBB) in three parts on Wednesday, according to an informed source.
The company sold $500 million of 2.9% three-year notes at 187.5 basis points over Treasuries, in line with guidance, which was unchanged from initial talk.
Pricing was at 99.94 to yield 2.921%.
A $400 million 3.625% five-year note sold at 99.891 to yield 3.649%, or Treasuries plus 212.5 bps.
The notes also sold in line with guidance and price talk.
Finally, $250 million of 4.65% 10-year notes priced with a spread of 250 bps over Treasuries. The notes priced at 99.69 to yield 4.69%.
Price guidance was set in the Treasuries plus 262.5 bps area, unchanged from initial talk.
BofA Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG and U.S. Bancorp Investments Inc. ran the books.
Proceeds will be used primarily to finance the acquisition of Erico Global Co., as well as to repay outstanding commercial paper and for general corporate purposes.
The unit of the industrial manufacturing company Pentair Ltd. has its U.S. headquarters in Golden Valley, Minn., and global headquarters in Schaffausen, Switzerland.
| Issuer: | Pentair Finance SA
|
| Issue: | Senior notes
|
| Amount: | $1.15 billion
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG, U.S. Bancorp Investments Inc.
|
| Trade date: | Sept. 9
|
| Settlement date: | Sept. 15
|
| Ratings: | Moody’s: Baa3
|
| Standard & Poor’s: BBB
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $500 million
|
| Maturity: | Sept. 15, 2018
|
| Coupon: | 2.9%
|
| Price: | 99.94
|
| Yield: | 2.921%
|
| Spread: | Treasuries plus 187.5 bps
|
| Price guidance: | Treasuries plus 187.5 bps area
|
|
|
| Five-year notes
|
| Amount: | $400 million
|
| Maturity: | Sept. 15, 2020
|
| Coupon: | 3.625%
|
| Price: | 99.891
|
| Yield: | 3.649%
|
| Spread: | Treasuries plus 212.5 bps
|
| Price guidance: | Treasuries plus 212.5 bps area
|
|
|
| 10-year notes
|
| Amount: | $250 million
|
| Maturity: | Sept. 15, 2025
|
| Coupon: | 4.65%
|
| Price: | 99.69
|
| Yield: | 4.69%
|
| Spread: | Treasuries plus 250 bps
|
| Price guidance: | Treasuries plus 262.5 bps area
|
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