By Aleesia Forni
Columbus, Ohio, Nov. 15 - Eaton Corp. Ltd., through its indirect subsidiary Turlock Corp., priced $4.9 billion of senior notes (Baa1/A-/A-) in five tranches on Wednesday, a market source said.
The company sold a tranche of $600 million 0.95% senior notes due 2015 and a $1 billion tranche of 1.5% senior notes due 2017.
There was also a $1.6 billion issue of 2.75% senior notes due 2022 and a tranche of $700 million 4% senior notes due 2032.
Finally, the company priced $1 billion 4.15% senior notes due 2042.
Bookrunners were Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC.
Proceeds from the Rule 144A and Regulation S transaction will be used to fund a portion of the consideration for the proposed $11.8 billion acquisition by the company and Eaton Corp. of Cooper Industries plc.
There is a mandatory call at 101 if the acquisition is not done by May 21, 2013.
Eaton was last in the U.S. bond market with a $300 million sale of three-year floating-rate notes on June 13, 2011.
The diversified power technology management company is based in Cleveland.
| Issuer: | Turlock Corp.
|
| Guarantor: | Eaton Corp. Ltd.
|
| Issue: | Senior notes
|
| Amount: | $4.9 billion
|
| Bookrunners: | Citigroup Global Markets Inc., Morgan Stanley & Co. LLC
|
| Mandatory call: | At 101 if Cooper acquisition not done on or before May 21, 2013
|
| Distribution: | Rule 144A, Regulation S
|
| Trade date: | Nov. 14
|
| Settlement date: | Nov. 20
|
|
|
| Three-year notes
|
| Amount: | $600 million
|
| Maturity: | 2015
|
| Coupon: | 0.95%
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | 2017
|
| Coupon: | 1.5%
|
|
|
| 10-year notes
|
| Amount: | $1.6 billion
|
| Maturity: | 2022
|
| Coupon: | 2.75%
|
|
|
| 20-year bonds
|
| Amount: | $700 million
|
| Maturity: | 2032
|
| Coupon: | 4%
|
|
|
| 30-year bonds
|
| Amount: | $1 billion
|
| Maturity: | 2042
|
| Coupon: | 4.15%
|
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