By Stephanie N. Rotondo
Phoenix, July 19 - Stanley Black & Decker Inc. gave new details on its $750 million issue of 5.75% $25-par junior subordinated notes due July 25, 2052 in an FWP filing with the Securities and Exchange Commission on Thursday.
Pricing occurred Wednesday. The deal was originally expected to be about $200 million. Pricing was in line with talk.
The notes were sold to the public at $25.00 per security. Underwriters paid $24.2125 plus accrued interest from July 25, if any. For institutional orders, the price was $24.50 plus any accrued interest.
Interest will be payable on the 15th of March, June, September and December, beginning Sept. 15. Interest payments can be deferred for one or more paying periods for up to five consecutive years.
Prior to July 25, 2017, there is a make-whole provision at Treasuries plus 50 basis points. On or after July 25, 2017, the call price is par plus accrued interest.
In the vent of a call due to a tax event prior to July 25, 2017, the call price is par plus accrued interest. And, in the event of a rating agency event prior to July 25, 2017 the redemption amount is 102% of par plus accrued interest.
The company will apply to list the notes on the New York Stock Exchange. Settlement is expected July 25.
Bank of America Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners. Citigroup Global Markets Inc. and RBC Capital Markets LLC are the co-managers.
Proceeds will be used for general corporate purposes, which may include repayment of short-term debt and the refinancing of recent and near-term debt maturities.
The New Britain, Conn.-based company is a provider of hand tools, power tools and accessories, industrial tools and automotive tools and equipment, mechanical access solutions, electronic security solutions and technology-based (engineered) fastening systems.
| Issuer: | Stanley Black & Decker Inc.
|
| Securities: | Junior subordinated notes
|
| Amount: | $750 million
|
| Maturity: | July 25, 2052
|
| Bookrunners: | Bank of America Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities LLC
|
| Co-managers: | Citigroup Global Markets Inc., RBC Capital Markets LLC
|
| Coupon: | 5.75%
|
| Price: | $25.00 par
|
| Yield: | 5.75%
|
| Call option: | Beginning July 25, 2017 at par
|
| Make-whole call: | 50 bps over Treasuries until July 25, 2017
|
| Pricing date: | July 18
|
| Settlement date: | July 25
|
| Cusip: | 854502705
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