Published on 7/22/2020 in the Prospect News Investment Grade Daily.
New Issue: Lennox International sells $600 million guaranteed notes due 2025, 2027
By Devika Patel
Knoxville, Tenn., July 22 – Lennox International Inc. priced $600 million of senior guaranteed notes (Baa3/BBB) in two tranches on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
Lennox sold $300 million of 1.35% five-year notes at a spread of Treasuries plus 110 basis points. These notes priced at 99.908 to yield 1.369%.
The company priced $300 million of 1.7% seven-year notes at a spread of Treasuries plus 130 bps. These notes priced at 99.705 to yield 1.745%.
J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BofA Securities Inc. and MUFG are the bookrunners for the offering.
The notes are guaranteed unconditionally by Advanced Distributor Products LLC, Allied Air Enterprises LLC, Heatcraft Inc., Heatcraft Refrigeration Products LLC, Lennox Global LLC, Lennox Industries Inc., Lennox National Account Services LLC, LGL Australia (US) Inc., LGL Europe Holding Co. and Lennox Switzerland GmbH.
The Richardson, Tex., climate-control products company will use the proceeds to repay debt under its domestic credit facility and for general corporate purposes.
| Issuer: | Lennox International Inc.
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| Guarantors: | Advanced Distributor Products LLC, Allied Air Enterprises LLC, Heatcraft Inc., Heatcraft Refrigeration Products LLC, Lennox Global LLC, Lennox Industries Inc., Lennox National Account Services LLC, LGL Australia (US) Inc., LGL Europe Holding Co. and Lennox Switzerland GmbH
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| Amount: | $600 million
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| Description: | Senior notes
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| Bookrunners: | J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BofA Securities Inc. and MUFG
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| Co-managers: | PNC Capital Markets LLC, Regions Securities LLC, SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc.
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| Trade date: | July 22
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| Settlement date: | July 30
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| Ratings: | Moody’s: Baa3
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| S&P: BBB
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| 2025 notes
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| Amount: | $300 million
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| Maturity: | Aug. 1, 2025
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| Coupon: | 1.35%
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| Price: | 99.908
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| Yield: | 1.369%
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| Spread: | Treasuries plus 110 bps
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| Call feature: | Make-whole call at Treasuries plus 20 bps until July 1, 2025, then a par call
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| 2027 notes
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| Amount: | $300 million
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| Maturity: | Aug. 1, 2027
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| Coupon: | 1.7%
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| Price: | 99.705
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| Yield: | 1.745%
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| Spread: | Treasuries plus 130 bps
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| Call feature: | Make-whole call at Treasuries plus 20 bps until June 1, 2027, then a par call
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