Copeland sets tranche sizes, talk for upsized $700 million equivalent notes; pricing Thursday

By Paul A. Harris

Portland, Ore., Feb. 1 – Copeland, the climate technologies business in which Blackstone acquired a majority stake from Emerson Electric Co. last year, upsized its two-part offering of senior secured notes due Dec. 15, 2030 (existing ratings Ba3/BB-/BB+) to $700 million equivalent from $500 million equivalent on Thursday, according to market sources.

The deal is comprised of two Rule 144A and Regulation S for life add-on tranches to Emerald Debt Merger Sub LLC and Emerald Co-Issuer Inc. notes that were issued last May in support of the Blackstone deal.

Included are a $450 million tap of the dollar-denominated 6 5/8% notes, talked at 100.5 to 100.75, cheap to initial guidance of 100.5 to 101, and a €230 million tap of the 6 3/8% notes, talked at 104 to 104.25, rich to initial guidance of 103.5 to 104.

Books close at noon ET on Thursday, with allocations to come thereafter.

The notes in both tranches are non-callable until June 15, 2026.

Left bookrunner Barclays will bill and deliver. RBC Capital Markets LLC, Wells Fargo Securities LLC, SMBC Nikko Securities America Inc., BXCM, 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 Americas 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 company intends to use the proceeds, including the incremental proceeds resulting from the $200 million equivalent upsize, to refinance a portion of its outstanding term loan B facility, and for general corporate purposes.

The original issue sizes were $2.275 billion of the 6 5/8% notes and €455 million of the 6 3/8% notes.

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

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