Published on 9/7/2017 in the Prospect News Investment Grade Daily.
New Issue: Eaton prices $1 billion of notes due 2027, 2047 via four bookrunners
By Devika Patel
Knoxville, Tenn., Sept. 7 – Eaton Corp. priced a $1 billion issue of fixed-rate notes (Baa1/A-/BBB+), according to an FWP filing with the Securities and Exchange Commission. The deal priced in two tranches on Thursday.
The 3.103% 10-year notes priced at par to yield 3.103% in a $700 million tranche at a spread of Treasuries plus 100 basis points.
Eaton sold $300 million of 3.915% 30-year notes at 120 bps over Treasuries. These notes priced at par to yield 3.915%.
BofA Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC were the bookrunners.
The Cleveland-based diversified industrial manufacturer plans to use the proceeds to repay its 1.5% notes due 2017.
| Issuer: | Eaton Corp.
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| Amount: | $1 billion
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| Description: | Notes
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| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC
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| Trade date: | Sept. 6
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| Settlement date: | Sept. 15
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| Ratings: | Moody’s: Baa1
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| S&P: A-
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| Fitch: BBB+
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| Distribution: | SEC registered
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| 10-year notes
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| Amount: | $700 million
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| Maturity: | Sept. 15, 2027
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| Coupon: | 3.103%
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| Price: | Par
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| Yield: | 3.103%
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| Spread: | Treasuries plus 100 bps
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| Call feature: | Make-whole call at Treasuries plus 15 bps until June 15, 2027, then a par call
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| Co-managers: | Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, Barclays, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., KeyBanc Capital Markets Inc., Wells Fargo Securities LLC, BNY Mellon Capital Markets LLC, PNC Capital Markets LLC and Loop Capital Markets LLC
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| 30-year notes
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| Amount: | $300 million
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| Maturity: | Sept. 15, 2047
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| Coupon: | 3.915%
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| Price: | Par
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| Yield: | 3.915%
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| Spread: | Treasuries plus 120 bps
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| Call feature: | Make-whole call at Treasuries plus 20 bps until March 15, 2047, then a par call
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| Co-managers: | Barclays, BNP Paribas Securities Corp., BNY Mellon Capital Markets LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., KeyBanc Capital Markets Inc., Loop Capital Markets LLC, Morgan Stanley & Co. LLC, PNC Capital Markets LLC and Wells Fargo Securities LLC
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