Published on 10/25/2016 in the Prospect News Investment Grade Daily.
New Issue: Lennox International prices $350 million 3% seven-year notes with 145 bps spread
By Cristal Cody
Eureka Springs, Ark., Oct. 25 – Lennox International Inc. priced $350 million of 3% seven-year senior notes at 99.943 to yield 3.009% on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The notes (Baa3/BBB) priced with a spread of 145 basis points over Treasuries.
J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the bookrunners for the offering.
The notes are guaranteed by Advanced Distributor Products LLC, Allied Air Enterprises LLC, Heatcraft Inc., Heatcraft Refrigeration Products LLC, Lennox Global Ltd., Lennox Industries Inc., Lennox National Account Services LLC, LGL Australia (US) Inc. and LGL Europe Holding Co.
The Richardson, Texas, climate-control products company plans to use the proceeds for working capital and other general corporate purposes, including repaying debt and stock repurchases.
| Issuer: | Lennox International Inc.
|
| Guarantors: | Advanced Distributor Products LLC, Allied Air Enterprises LLC, Heatcraft Inc., Heatcraft Refrigeration Products LLC, Lennox Global Ltd., Lennox Industries Inc., Lennox National Account Services LLC, LGL Australia (US) Inc. and LGL Europe Holding Co.
|
| Amount: | $350 million
|
| Description: | Senior notes
|
| Maturity: | Nov. 15, 2023
|
| Bookrunners: | J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Senior co-managers: | BofA Merrill Lynch, MUFG, PNC Capital Markets LLC, U.S. Bancorp Investments, Inc.
|
| Co-managers: | BB&T Capital Markets, Regions Securities LLC
|
| Coupon: | 3%
|
| Price: | 99.943
|
| Yield: | 3.009%
|
| Spread: | Treasuries plus 145 bps
|
| Call features: | Make-whole call before Sept. 15, 2023 at Treasuries plus 25 bps; on or after Sept. 15, 2023 at par
|
| Trade date: | Oct. 25
|
| Settlement date: | Nov. 3
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Distribution: | SEC registered
|
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