By Andrea Heisinger
New York, Nov. 10 - Emerson Electric Co. priced an upsized $600 million of notes (A2/A/) in two tranches on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The total size was increased from $500 million, with $50 million added to each tranche.
The $300 million of 4.25% notes due 2020 priced at 99.47 to yield 4.311% with a spread of Treasuries plus 85 basis points.
A $300 million tranche of 5.25% 30-year notes priced at 98.868 to yield 5.326%, or Treasuries plus 95 bps.
Both tranches came in at the tight end of guidance, a source close to the sale said. Talk was in the 90 bps area for the notes due 2020 and was in the 100 bps area for the 30-year tranche.
The notes each have make-whole call at 15 bps over Treasuries and feature a change-of-control put of 101%.
Citigroup Global Markets Inc. and J.P. Morgan Securities Inc. ran the books.
Co-managers were Bank of America Merrill Lynch, Barclays Capital Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Morgan Stanley & Co. and RBC Capital Markets Corp.
Proceeds will be used for general corporate purposes, including the acquisition of Avocent Corp. and to repay commercial paper borrowings.
The engineering company is based in Ferguson, Mo.
| Issuer: | Emerson Electric Co.
|
| Issue: | Notes
|
| Total amount: | $600 million, increased from $500 million
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities Inc.
|
| Co-managers: | Bank of America Merrill Lynch, Barclays Capital Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Morgan Stanley & Co., RBC Capital Markets Corp.
|
| Change-of-control put: | 101%
|
| Trade date: | Nov. 10
|
| Settlement date: | Nov. 16
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
|
|
| Notes due 2020
|
| Amount: | $300 million, increased from $250 million
|
| Maturity: | Nov. 15, 2020
|
| Coupon: | 4.25%
|
| Price: | 99.47
|
| Yield: | 4.311%
|
| Spread: | Treasuries plus 85 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Price talk: | 90 bps area
|
|
|
| 30-year notes
|
| Amount: | $300 million, increased from $250 million
|
| Maturity: | Nov. 15, 2039
|
| Coupon: | 5.25%
|
| Price: | 98.868
|
| Yield: | 5.326%
|
| Spread: | Treasuries plus 95 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Price talk: | 100 bps area
|
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