Published on 9/18/2017 in the Prospect News Investment Grade Daily.
New Issue: Allegion US Holding sells $800 million of senior notes due 2024, 2027
By Cristal Cody
Tupelo, Miss., Sept. 18 – Allegion US Holding Co. Inc. sold $800 million of senior notes (Baa3/BBB/BBB-) in two tranches on Monday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $400 million of 3.2% seven-year notes at 99.944 to yield 3.209% and a spread of 115 basis points over Treasuries.
Allegion sold $400 million of 3.55% 10-year notes at 99.758 to yield 3.579%, or a 135 bps over Treasuries spread.
J.P. Morgan Securities LLC, BofA Merrill Lynch, Wells Fargo Securities, LLC, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. LLC were the bookrunners.
Proceeds will be used to redeem the company’s $300 million of 5.75% senior notes due 2021 and $300 million of 5.875% senior notes due 2023, to repay $165 million of borrowings under its new revolving credit facility and for general corporate purposes.
Allegion US Holding is a subsidiary of Allegion plc, a security products company based in Carmel, Ind.
| Issuer: | Allegion US Holding Co. Inc.
|
| Amount: | $800 million
|
| Description: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Wells Fargo Securities, LLC, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. LLC
|
| Co-managers: | Fifth Third Securities, Inc., MUFG, PNC Capital Markets LLC, TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
|
| Change-of-control put: | 101%
|
| Trade date: | Sept. 18
|
| Settlement date: | Oct. 2
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| Seven-year notes
|
| Amount: | $400 million
|
| Maturity: | Oct. 1, 2024
|
| Coupon: | 3.2%
|
| Price: | 99.944
|
| Yield: | 3.209%
|
| Spread: | Treasuries plus 115 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps before Aug. 1, 2024; thereafter at par
|
|
|
| 10-year notes
|
| Amount: | $400 million
|
| Maturity: | Oct. 1, 2027
|
| Coupon: | 3.55%
|
| Price: | 99.758
|
| Yield: | 3.579%
|
| Spread: | Treasuries plus 135 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps before July 1, 2027; thereafter at par
|
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