By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., Aug. 9 – Ingersoll Rand Inc. sold $1.5 billion of fixed-rate senior notes (Baa3/BBB-/BBB-) in two tranches after holding fixed-income investor calls on Monday, according to a market source and an FWP filed with the Securities and Exchange Commission.
The $500 million of 5.4% senior notes due Aug. 14, 2028 priced at 99.611 to yield 5.49%, or at Treasuries plus 137 basis points after talk in the Treasuries plus 180 bps area.
The $1 billion of 5.7% senior notes due Aug. 14, 2033 priced at 99.234 to yield 5.802%, or at Treasuries plus 177 bps after talk in the Treasuries plus 215 bps area.
The notes feature make-whole call options at Treasuries plus 25 bps for the 2028 notes and Treasuries plus 30 bps for the 2030 notes before the par call dates, which is one month prior to maturity and three months prior to maturity, respectively.
Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, HSBC Securities (USA) Inc., Deutsche Bank Securities Inc. and TD Securities (USA) LLC are the joint bookrunners.
Proceeds will be used to repay a portion of the amounts outstanding under the company’s senior secured credit facilities.
Based in Davidson, N.C., Ingersoll Rand produces mission-critical air, fluid, energy and medical technologies.
| Issuer: | Ingersoll Rand Inc.
|
| Amount: | $1.5 billion
|
| Issue: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, HSBC Securities (USA) Inc., Deutsche Bank Securities Inc. and TD Securities (USA) LLC
|
| Senior co-managers: | Barclays, ING Financial Markets LLC, RBC Capital Markets, LLC and U.S. Bancorp Investments, Inc.
|
| Trustee: | Deutsche Bank Trust Co. Americas
|
| Counsel to issuer: | Simpson Thacher & Bartlett LLP
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| Counsel to bookrunners: | Cravath, Swaine & Moore LLP,
|
| Change of control: | At 101
|
| Trade date: | Aug. 8
|
| Settlement date: | Aug. 14
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
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| Distribution: | SEC registered
|
|
|
| 2028 notes
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| Amount: | $500 million
|
| Maturity: | Aug. 14, 2028
|
| Coupon: | 5.4%
|
| Price: | 99.611
|
| Yield: | 5.49%
|
| Spread: | Treasuries plus 137 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps before July 14, 2028; after at par
|
| Price talk: | Treasuries plus 180 bps area
|
| Cusip: | 45687VAA4
|
|
|
| 2033 notes
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| Amount: | $1 billion
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| Maturity: | Aug. 14, 2033
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| Coupon: | 5.7%
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| Price: | 99.234
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| Yield: | 5.802%
|
| Spread: | Treasuries plus 177 bps
|
| Call features: | Make-whole call at Treasuries plus 30 bps before May 14, 2033; after at par
|
| Price talk: | Treasuries plus 215 bps area
|
| Cusip: | 45687VAB2
|
|
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