Copeland sets talk, tranche sizes in $2.8 billion equivalent notes offering; pricing Thursday

By Paul A. Harris

Portland, Ore., May 4 – Copeland, the climate technologies business in which Blackstone is acquiring a majority stake from Emerson Electric Co., set price talk in its approximately $2.8 billion equivalent two-part offering of senior secured notes due Dec. 15, 2030 (Ba3/BB-/BB-), according to a syndicate source.

An upsized $2.275 billion tranche of notes is talked to yield in the 6¾% area, tight to initial guidance in the high-6% area. The dollar tranche is upsized by $25 million from its launch size of $2.25 billion.

A €455 million tranche of the notes is talked to yield in the 6½% area, in line with initial talk in the mid-6% area.

The Rule 144A and Regulation S for life deal is set to price on Thursday.

The notes in both tranches come with three years of call protection. They feature 40% equity clawbacks at par plus the full coupons during the non-call period. They also feature 101% change-of-control put provisions.

Proceeds will be used to help fund Blackstone’s acquisition of a majority stake in Copeland, Emerson Electric’s climate technologies business, for $14 billion.

Left bookrunner Barclays will bill and deliver. RBC Capital Markets LLC, Wells Fargo Securities LLC, SMBC Nikko Securities America Inc., Goldman Sachs & Co. LLC, BNP Paribas Securities Corp., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., Truist Securities Inc., BofA Securities Inc., MUFG Securities America Inc., Scotia Capital (USA) Inc., TD Securities (USA) LLC, CIBC World Markets Corp., Regions Securities LLC, Fifth Third Securities Inc. and U.S. Bancorp Investments Inc. are the joint bookrunners.

The issuing entity will be Emerald Debt Merger Sub LLC, a Blackstone subsidiary created to help effect the acquisition.

Copeland is a manufacturer of mission critical, highly engineered heating, ventilation, air conditioning and refrigeration components.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.