By Abigail W. Adams
Portland, Me., Feb. 20 – Fortive Corp. priced $1.25 billion of three-year convertible notes after the market close on Tuesday at the rich end of talk at par with a coupon of 0.875% and an initial conversion premium of 32.5%, according to a company news release.
Price talk was for a coupon of 0.875% to 1.375% and an initial conversion premium of 27.5% to 32.5%, according to a market source.
Barclays, Citigroup Global Markets Inc., BofA Merrill Lynch and BNP Paribas Securities Corp. are the bookrunners for the Rule 144A deal, which carries a greenshoe of $187.5 million.
The notes are non-callable. They are contingently convertible until Nov. 15, 2021.
The notes will be settled in cash, shares or a combination of both at the company’s option.
Proceeds will be used to fund a portion of the acquisition of the Advanced Sterilization Products business from Johnson & Johnson subsidiary Ethicon, Inc.
If the acquisition is not completed, proceeds will be used for working capital and other general corporate purposes.
Fortive is an Everett, Wash.-based diversified industrial conglomerate.
| Issuer: | Fortive Corp.
|
| Securities: | Convertible senior notes
|
| Amount: | $1.25 billion
|
| Greenshoe: | $187.5 million
|
| Maturity: | Feb. 15, 2022
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., BofA Merrill Lynch and BNP Paribas Securities Corp.
|
| Coupon: | 0.875%
|
| Price: | Par
|
| Yield: | 0.875%
|
| Conversion premium: | 32.5%
|
| Conversion price: | $106.64
|
| Conversion rate: | 9.3777
|
| Call options: | None
|
| Pricing date: | Feb. 19
|
| Settlement date: | Feb. 22
|
| Talk: | Coupon of 0.875% to 1.375% and an initial conversion premium of 27.5% to 32.5%
|
| Stock symbol: | NYSE: FTV
|
| Stock price: | $80.48 at market close Feb. 20
|
| Market capitalization: | $26.88 billion
|
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