By Marisa Wong and Cristal Cody
Los Angeles, Feb. 24 – Stanley Black & Decker, Inc. disclosed details on its $1 billion of senior notes (Baa1/A/A-) sold in two parts, according to an FWP filing with the Securities and Exchange Commission.
The company priced $500 million of 2.3% senior notes due Feb. 24, 2025 at 99.865 to yield 2.347%, or a spread of 62.5 basis points over Treasuries. Initial price talk was in the Treasuries plus 80 bps area, according to a market source.
The deal also included $500 million of 3% senior notes due May 15, 2032 priced at 99.81 to yield 3.022%, or a spread of 110 bps over Treasuries. Initial price talk was in the Treasuries plus 130 bps area.
The notes feature a make-whole call and then a par call a number of months before each maturity date.
BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities, LLC are the joint bookrunners.
Proceeds will be used for general corporate purposes, including repayment of debt under the company’s commercial paper facilities.
Stanley Black & Decker is a New Britain, Conn.-based provider of hand tools, power tools and related accessories, engineered fastening systems and products, services and equipment for oil and gas and infrastructure applications, commercial electronic security and monitoring systems, health care solutions and automatic doors.
| Issuer: | Stanley Black & Decker, Inc.
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| Amount: | $1 billion
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| Issue: | Senior notes
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| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities, LLC
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| Trustee: | Bank of New York Mellon Trust Co., NA
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| Counsel to issuer: | Skadden, Arps, Slate, Meagher & Flom LLP (New York), In-house (Connecticut)
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| Counsel to bookrunners: | Davis Polk & Wardwell LLP
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| Change-of-control put: | At 101
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| Ratings event put: | At 101
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| Trade date: | Feb. 22
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| Settlement date: | Feb. 24
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| Ratings: | Moody’s: Baa1
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| S&P: A
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| Fitch: A-
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| Distribution: | SEC registered
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|
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| 2025 notes
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| Amount: | $500 million
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| Maturity: | Feb. 24, 2025
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| Coupon: | 2.3%
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| Price: | 99.865
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| Yield: | 2.347%
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| Call options: | Make-whole call at Treasuries plus 10 bps prior to Feb. 24, 2023; par call after that
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| Spread: | Treasuries plus 62.5 bps
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| Price talk: | Treasuries plus 80 bps area
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| Cusip: | 854502AP6
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|
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| 2032 notes
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| Amount: | $500 million
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| Maturity: | May 15, 2032
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| Coupon: | 3%
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| Price: | 99.81
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| Yield: | 3.022%
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| Call option: | Make-whole call at Treasuries plus 20 bps prior to Feb. 15, 2032; par call after that
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| Spread: | Treasuries plus 110 bps
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| Price talk: | Treasuries plus 130 bps area
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| Cusip: | 854502AQ4
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