By Andrea Heisinger
Omaha, May 15 - Eaton Corp. priced $750 million of notes in two tranches Thursday, an informed source said.
A $300 million tranche of 4.9% five-year notes priced at 99.926 to yield 4.917%, or Treasuries plus 182 basis points. They have a make-whole redemption of Treasuries plus 30 bps.
A $450 million tranche of 5.6% 10-year notes priced at 99.744 to yield 5.634%, or Treasuries plus 182 bps. They have a make-whole of Treasuries plus 30 bps.
Both tranches had price talk in the 185 bps area and came at the tight end of talk.
The notes feature a change-of-control put of 101%.
Bookrunners were Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and Morgan Stanley & Co., Inc.
Proceeds will be used to repay commercial paper used to finance the acquisitions of the Moeller Group and Phoenixtec Power Co.
The electrical systems and components company is based in Cleveland.
| Issuer: | Eaton Corp.
|
| Issue: | Notes
|
| Amount: | $750 million
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities Inc., Morgan Stanley & Co., Inc.
|
| Change-of-control put: | 101%
|
| Trade date: | May 15
|
| Settlement date: | May 20
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Fitch: A
|
|
|
| Five-year tranche
|
| Amount: | $300 million
|
| Maturity: | May 15, 2013
|
| Coupon: | 4.9%
|
| Price: | 99.926
|
| Yield: | 4.917%
|
| Spread: | Treasuries plus 182 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Price talk: | 185 bps area
|
|
|
| 10-year tranche
|
| Amount: | $450 million
|
| Maturity: | May 15, 2018
|
| Coupon: | 5.6%
|
| Price: | 99.744
|
| Yield: | 5.634%
|
| Spread: | Treasuries plus 182 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Price talk: | 185 bps area
|
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