By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, Dec. 6 – Ecolab Inc. priced $2.5 billion of senior notes (A3/A-/A-) in four parts on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company sold $500 million of 0.9% notes due Dec. 15, 2023 at a spread of 30 basis points over Treasuries, compared to talk at the 60 bps spread area. The issue priced at 99.931 to yield 0.935%.
A $500 million tranche of 1.65% long five-year notes priced at 99.97 to yield 1.656%, or a spread of Treasuries plus 45 bps.
Initial guidance was at the 70 bps over Treasuries area.
A $650 million tranche of 2.125% 10-year notes priced at 99.962 to yield 2.129%, or a spread of Treasuries plus 70 bps.
Initial guidance for this tranche was at the 90 bps over Treasuries area.
An $850 million tranche of 2.7% 30-year notes priced at 99.755 to yield 2.712%, or a spread of Treasuries plus 95 bps.
Initial guidance for this tranche was at the 115 bps over Treasuries area.
J.P. Morgan Securities LLC, Barclays, BofA Securities, Inc., Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and MUFG were the bookrunners.
Ecolab will use proceeds, along with expected borrowings under its commercial paper program, to repay borrowings used to finance its acquisition of Purolite Corp.
The cleaning and sanitizing company is based in St. Paul, Minn.
| Issuer: | Ecolab Inc.
|
| Amount: | $2.5 billion
|
| Issue: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Barclays, BofA Securities, Inc., Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and MUFG
|
| Senior co-managers: | Mizuho Securities USA LLC, SMBC Nikko Securities America, Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
|
| Co-manager: | Siebert Williams Shank & Co., LLC
|
| Trade date: | Dec. 6
|
| Settlement date: | Dec. 15
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Fitch: A-
|
| Distribution: | SEC registered
|
|
|
| Two-year notes
|
| Amount: | $500 million
|
| Maturity: | Dec. 15, 2023
|
| Coupon: | 0.9%
|
| Price: | 99.931
|
| Yield: | 0.935%
|
| Spread: | Treasuries plus 30 bps
|
| Call features: | Make-whole call at Treasuries plus 5 bps before Dec. 15, 2022; thereafter at par
|
| Price guidance: | Treasuries plus 60 bps area
|
| Cusip: | 278865BK5
|
|
|
| Notes due 2027
|
| Amount: | $500 million
|
| Maturity: | Feb. 1, 2027
|
| Coupon: | 1.65%
|
| Price: | 99.97
|
| Yield: | 1.656%
|
| Spread: | Treasuries plus 45 bps
|
| Call features: | Make-whole call at Treasuries plus 7.5 bps before Jan. 1, 2027; thereafter at par
|
| Price guidance: | Treasuries plus 70 bps area
|
| Cusip: | 278865BL3
|
|
|
| Notes due 2032
|
| Amount: | $650 million
|
| Maturity: | Feb. 1, 2032
|
| Coupon: | 2.125%
|
| Price: | 99.962
|
| Yield: | 2.129%
|
| Spread: | Treasuries plus 70 bps
|
| Call features: | Make-whole call at Treasuries plus 12.5 bps before Nov. 1, 2031; thereafter at par
|
| Price guidance: | Treasuries plus 90 bps area
|
| Cusip: | 278865BM1
|
|
|
| Notes due 2051
|
| Amount: | $850 million
|
| Maturity: | Dec. 15, 2051
|
| Coupon: | 2.7%
|
| Price: | 99.755
|
| Yield: | 2.712%
|
| Spread: | Treasuries plus 95 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps before Aug. 15, 2051; thereafter at par
|
| Price guidance: | Treasuries plus 115 bps area
|
| Cusip: | 278865BN9
|
|
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