Stanley Black & Decker’s 5.375% equity units due 2020 list on NYSE

By Stephanie N. Rotondo

Seattle, May 19 – Stanley Black & Decker Inc.’s $675 million of 5.375% equity units due 2020 listed on the New York Stock Exchange on Friday, according to a market source.

The ticker is “SWP.”

The deal priced May 11, coming upsized from $650 million and with a 17.5% initial conversion premium.

The coupon was below the 5.5% to 6% talk while the conversion premium was in the middle of the 15% to 20% talk.

The over-allotment option was $75 million, reduced from $97.5 million.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and Wells Fargo Securities LLC were the joint bookrunners.

Each $100-par unit is made up of a three-year forward contract to purchase common stock and one share of 0% series C convertible perpetual preferred stock.

The preferreds will be remarketed in May 2020 although the company has an option to remarket it earlier from Feb. 12, 2020 to April 28, 2020.

Starting in June 2020, the company can call the underlying preferreds if the dividend rate is increased during the remarketing.

The initial conversion price is $162.27.

Conversions will be settled in cash, stock or a combination, at the company’s option. The preferred shares can only be converted upon separation in May 2020. Prior to that date, the paper can only be converted in certain circumstances.

Proceeds will be used for general corporate purposes, including the repayment of short-term borrowings.

Stanley Black & Decker is a New Britain, Conn.-based diversified global provider of hand tools, power tools and related accessories, electronic security solutions, health care solutions, engineered fastening systems and more.

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