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ECOLAB INC. 8-K Report, Financial Obligation (Jul 8, 2015)

Reports
Financial Events·Other Events·Exhibits & Filings
Filing Date
Filed July 8, 2015
Period End
July 1, 2015
Security
ECL
In the record · 2016–202610-K1110-Q328-K144

ECL filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 144 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Sep ’16Sep ’16
  2. Leadership change8-K · Apr ’19Apr ’19
  3. Deal closed8-K · Dec ’21Dec ’21
  4. Leadership change8-K · Aug ’25Aug ’25

01—Abstract

Summary

Summary of the 8-K filed July 8, 2015. Cited figures are marked; the original filing is the authoritative source.

Ecolab Inc. (ECL) filed an 8-K report on July 8, 2015, disclosing the issuance of €575 million in 2.625%a Euro Notes due 2025.

The primary purpose of this issuance was to repay a portion of the company's commercial paper borrowings, which were utilized for general corporate and working capital needs. The net proceeds received by the company from this offering were approximately $635.1 millionb. This debt issuance is significant as it provides Ecolab with long-term financing at a fixed interest rate.

The notes are senior unsecured obligations and rank equally with other senior, unsubordinated debt. The indenture includes provisions for repurchase events triggered by specified changes of control coupled with a credit rating downgrade, offering some protection to investors. The company utilized an existing shelf registration statement for this offering, indicating well-established access to capital markets.

02—Key points

Key Highlights

  1. Ecolab issued €575 million of 2.625% Euro Notes due 2025.
  2. The net proceeds of approximately $635.1 million will be used to repay commercial paper borrowings.
  3. The notes bear a fixed annual interest rate of 2.625%, payable annually.
  4. The maturity date for the notes is July 8, 2025.
  5. The issuance occurred under Ecolab's effective shelf registration statement filed on January 12, 2015.
  6. The notes are senior unsecured and unsubordinated obligations of the company.
  7. The indenture includes change of control repurchase provisions if accompanied by a credit rating downgrade.

03—Questions

Frequently Asked Questions

  1. What is the primary purpose of this Euro Note issuance?

    The primary purpose of the issuance is to repay a portion of Ecolab's commercial paper borrowings, which were used for general corporate and working capital purposes. This allows the company to refinance short-term debt with longer-term, fixed-rate financing.

  2. What are the key terms of the new Euro Notes?

    The notes have an aggregate principal amount of €575 million, bear a fixed interest rate of 2.625% per annum payable annually, and mature on July 8, 2025. They are senior unsecured and unsubordinated obligations of Ecolab.

  3. Are there any investor protections related to changes in control or credit quality?

    Yes, the indenture includes provisions that, upon a specified change of control event accompanied by a downgrade of the notes' investment grade rating by both Moody's and Standard & Poor's within a defined timeframe, the company will be required to offer to repurchase the notes at 101% of the principal amount plus accrued interest, unless the company opts to redeem them.

  4. How did Ecolab manage the offering process for these notes?

    Ecolab conducted this offering under its automatic shelf registration statement on Form S-3, which was previously filed and effective. This indicates the company has established procedures for accessing public capital markets efficiently.

04—Continue

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