By Cristal Cody
Tupelo, Miss., April 27 – Emerson Electric Co. priced $1.5 billion of senior notes (A2/A) in three tranches on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
Emerson sold $500 million of 1.8% notes due Oct. 15, 2027 at 99.91 to yield 1.813%, or with a spread of Treasuries plus 125 basis points.
A $500 million tranche of 1.95% notes due Oct. 15, 2030 priced at 99.446 to yield 2.009%. The notes priced with a Treasuries plus 135 bps spread.
Emerson placed $500 million of 2.75% notes due Oct. 15, 2050 at 99.878 to yield 2.756%, or a spread of 150 bps over Treasuries.
Initial price talk on the long seven- and long 10-year tranches was in the Treasuries plus 180 bps area, while the long 30-year notes were talked at the 200 bps spread area.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and BofA Securities, Inc. were the bookrunners.
Proceeds will be used to repay commercial paper and for general corporate purposes.
Emerson is a St. Louis-based technology and engineering company.
| Issuer: | Emerson Electric Co.
|
| Amount: | $1.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and BofA Securities, Inc.
|
| Co-managers: | Barclays, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and Wells Fargo Securities, LLC
|
| Trade date: | April 27
|
| Settlement date: | April 29
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Distribution: | SEC registered
|
|
|
| 7.5-year notes
|
| Amount: | $500 million
|
| Maturity: | Oct. 15, 2027
|
| Coupon: | 1.8%
|
| Price: | 99.91
|
| Yield: | 1.813%
|
| Spread: | Treasuries plus125 bps
|
| Call features: | Make-whole call before Aug. 15, 2027 at Treasuries plus 20 bps; thereafter at par
|
| Price guidance: | Treasuries plus 180 bps area
|
|
|
| 10.5-year notes
|
| Amount: | $500 million
|
| Maturity: | Oct. 15, 2030
|
| Coupon: | 1.95%
|
| Price: | 99.446
|
| Yield: | 2.009%
|
| Spread: | Treasuries plus 135 bps
|
| Call features: | Make-whole call before July 15, 2030 at Treasuries plus 20 bps; thereafter at par
|
| Price guidance: | Treasuries plus 180 bps area
|
|
|
| 30.5-year notes
|
| Amount: | $500 million
|
| Maturity: | Oct. 15, 2050
|
| Coupon: | 2.75%
|
| Price: | 99.878
|
| Yield: | 2.756%
|
| Spread: | Treasuries plus 150 bps
|
| Call features: | Make-whole call before Aug. 15, 2027 at Treasuries plus 20 bps; thereafter at par
|
| Price guidance: | Treasuries plus 200 bps area
|
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