By Lisa Kerner
Charlotte, N.C., Oct. 31 - Ecolab Inc. provided additional details on the previously announced sale of $500 million of senior notes in a form 8-K filed with the Securities and Exchange Commission on Monday.
Under a note purchase agreement, Ecolab will sell $250 million of 3.69% series A senior notes due 2018 and $250 million of 4.32% series B senior notes due 2023.
The private placement transactions are expected to close Nov. 21.
Purchasers include New York Life Insurance Co., New York Life Insurance and Annuity Corp., Aviva Life and Annuity Co., Lincoln National Life Insurance Co., Hartford Life Insurance Co., Physicians Life Insurance Co., Axa Equitable Life Insurance Co., Mony Life Insurance Co., Symetra Life Insurance Co., A Washington Corp., Massachusetts Mutual Life Insurance Co., C.M. Life Insurance Co., Guardian Life Insurance Co. of America, State Farm Life Insurance Co., Allianz Life Insurance Co. of North America, Allstate Life Insurance Co. of New York, American Heritage Life Insurance Co., Modern Woodmen of America, American United Life Insurance Co. and Farm Bureau Life Insurance Co. of Michigan.
Proceeds will be used to fund Ecolab's previously announced merger with Nalco Holding Co. and for general corporate purposes, according to an Ecolab news release.
The notes have a make-whole call at Treasuries plus 50 basis points.
The notes are guaranteed by Ecolab subsidiaries in certain circumstances and rank equal in right of payment with other senior debt.
Financial covenants under the agreement require Ecolab to maintain an interest expense coverage ratio of not less than 3.5 to 1.0 and include restrictions on liens and subsidiary debt.
Ecolab provides sanitation, chemical and cleaning services and is based in St. Paul. Nalco is based in Naperville, Ill., and provides water, energy, air and process technologies and services.
| Issuer: | Ecolab Inc.
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| Issue: | Senior notes
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| Amount: | $500 million
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| Call option: | Make-whole at Treasuries plus 50 bps
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| Pricing date: | Oct. 28
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| Settlement date: | Nov. 21
|
| Distribution: | Private placement
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| Purchasers: | New York Life Insurance Co., New York Life Insurance and Annuity Corp., Aviva Life and Annuity Co., Lincoln National Life Insurance Co., Hartford Life Insurance Co., Physicians Life Insurance Co., Axa Equitable Life Insurance Co., Mony Life Insurance Co., Symetra Life Insurance Co., A Washington Corp., Massachusetts Mutual Life Insurance Co., C.M. Life Insurance Co., Guardian Life Insurance Co. of America, State Farm Life Insurance Co., Allianz Life Insurance Co. of North America, Allstate Life Insurance Co. of New York, American Heritage Life Insurance Co., Modern Woodmen of America, American United Life Insurance Co. and Farm Bureau Life Insurance Co. of Michigan.
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|
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| Series A
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| Amount: | $250 million
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| Maturity: | Nov. 21, 2018
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| Coupon: | 3.69%
|
|
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| Series B
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| Amount: | $250 million
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| Maturity: | Nov. 21, 2023
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| Coupon: | 4.32%
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