Eaton to issue $5.1 billion debt in several tranches for acquisition

By Susanna Moon

Chicago, May 21 - Eaton Corp. plans to issue $5.1 billion of term debt in several tranches to refinance a $6.75 billion bridge loan being used for the acquisition of Cooper Industries plc.

The debt will be issued with a variety of maturities, according to a presentation on the acquisition filed with the Securities and Exchange Commission.

The company lined up a bridge financing commitment from Morgan Stanley Bank, NA, Morgan Stanley Senior Funding, Inc. and Citibank, NA for the cash portion of the acquisition.

Eaton also will refinance the bridge loan with cash on hand and the possible sale of assets, according to a press release.

In the medium term, Eaton is targeting a return to an A credit rating for its long-term debt, the presentation noted.

At the closing of the acquisition, Eaton Global plc will be assuming and guaranteeing the outstanding debt of Cooper Industries.

Eaton is a diversified industrial manufacturer based in Cleveland. Cooper Industries is an electrical equipment supplier based in Dublin.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.