New Issue: Copeland prices $2.8 billion equivalent secured notes in dollar and euro tranches

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., priced approximately $2.8 billion equivalent of senior secured notes due Dec. 15, 2030 (Ba3/BB-/BB-) in two tranches on Thursday, according to a syndicate source.

The deal included an upsized $2.275 billion tranche of notes that priced at par to yield 6 5/8%. The tranche size increased from $2.25 billion. The yield printed at the tight end of yield talk in the 6¾% area. Initial guidance was in the high-6% area.

The deal also included a €455 million tranche of the notes that priced at par to yield 6 3/8%, tight to talk in the 6½% area. Initial talk in the mid-6% area.

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. Joint bookrunners were 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 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.

The notes were sold via Emerald Debt Merger Sub LLC and Emerald Co-Issuer Inc.

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

Issuers:	Emerald Debt Merger Sub LLC and Emerald Co-Issuer Inc.
Issue:	Senior secured notes
Maturity:	Dec. 15, 2030
Left bookrunner:	Barclays (bill and deliver)
Joint bookrunners:	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 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.
Trade date:	May 4
Settlement date:	May 19
Ratings:	Moody’s: Ba3
	S&P: BB-
	Fitch: BB+
Distribution:	Rule 144A and Regulation S for life
Marketing:	Roadshow
Dollar notes
Amount:	$2.275 billion, increased from $2.25 billion
Coupon:	6 5/8%
Price:	Par
Yield:	6 5/8%
Spread:	339 bps
First call:	June 15, 2026 at 103.313
Price talk:	6¾% area
Euro notes
Amount:	€455 million
Coupon:	6 3/8%
Price:	Par
Yield:	6 3/8%
Spread:	421 bps
First call:	June 15, 2026 at 103.188
Price talk:	6½% area

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