Emerson Electric to conduct sale of fixed-rate notes in three parts; price talk emerges

By Devika Patel and Cristal Cody

Knoxville, Tenn., Dec. 7 – Emerson Electric Co. intends to sell fixed-rate senior notes in three tranches due 2028, 2031 and 2051, according to a 424B5 filing with the Securities and Exchange Commission.

The tranche to Dec. 21, 2028 is talked in the Treasuries plus 80 basis points area, a tranche due Dec. 21, 2031 is talked with a 95 bps area spread and the longest tranche, due Dec. 21, 2051, is talked to yield in the 120 bps to 125 bps area over Treasuries, a market source told Prospect News.

The notes will have make-whole calls until the par call date and then par calls. The par call date will be two months prior to maturity for the 2028 notes, three months prior to maturity for the 2031 notes and six months prior to maturity for the 2051 notes.

Goldman Sachs & Co. LLC and Citigroup Global Markets Inc. are the bookrunners.

Proceeds will be used to pay approximately $6 billion to shareholders of Aspen Technology, Inc. under an agreement with Aspen.

Emerson is a St. Louis-based technology and engineering company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.