Allegion to sell fixed-rate senior notes to help fund acquisition

By William Gullotti

Buffalo, N.Y., June 7 – Allegion plc, via its subsidiary Allegion US Holding Co. Inc., plans to price new fixed-rate senior notes to partially fund its acquisition of Stanley Access Technologies LLC, a subsidiary of Stanley Black & Decker, Inc., according to a 424B5 filing with the Securities and Exchange Commission and a press release on Tuesday.

The subsidiary will issue the notes with the parent serving as guarantor.

The notes will have make-whole and par calls and include a change-of-control put at 101.

Goldman Sachs & Co. LLC, BofA Securities, Inc. and J.P. Morgan Securities LLC are the joint bookrunning managers.

Wells Fargo Bank, NA is the trustee.

Kirkland & Ellis LLP and Arthur Cox LLP are counsel to the issuer and guarantor. Cravath, Swaine & Moore LLP is counsel to the underwriters.

Proceeds, together with cash on hand and additional borrowings under the company’s revolver, will be used to finance the approximately $900 million transaction. The transaction agreement was signed April 22.

Allegion US is a security products company based in Carmel, Ind. The parent company is based in Dublin, Ireland.

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