By Paul A. Harris
Portland, Ore., Sept. 27 - Allegion US Holding Co. priced a $300 million issue of eight-year senior notes (Ba2/BB+/) at par to yield 5¾% on Friday, according to a market source.
The yield printed on top of the yield talk.
Goldman Sachs & Co., J.P. Morgan Securities LLC, BNP Paribas Securities Corp., BofA Merrill Lynch, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC were the joint bookrunners.
Proceeds, along with a $1.5 billion credit facility, will be used to pay a special cash distribution to the company prior to the proposed spin-off of its commercial and residential security businesses and for general corporate purposes.
In a change to the planned financing, the company downsized the bond portion by $200 million, to $300 million from $500 million, and upsized its term loan by the same amount, to $500 million from $300 million.
Allegion is a Swords, Ireland-based provider of security products and solutions and an indirect, wholly owned subsidiary of Ingersoll-Rand plc.
| Issuer: | Allegion US Holding Co.
|
| Amount: | $300 million
|
| Maturity: | Oct. 1, 2021
|
| Securities: | Senior notes
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities LLC, BNP Paribas Securities Corp., BofA Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC
|
| Coupon: | 5¾%
|
| Price: | Par
|
| Yield: | 5¾%
|
| Spread: | 341 bps
|
| First call: | Oct. 1, 2016 at 104.313
|
| Equity clawback: | 35% at 105.75 until Oct. 1, 2016
|
| Change-of-control put: | 101%
|
| Trade date: | Sept. 27
|
| Settlement date: | Oct. 4
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB+
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 5¾% area
|
| Marketing: | Roadshow
|
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