Summary
Emerson Electric Co. (EMR) announced on January 9, 2019, the pricing of a public offering of €1 billion in aggregate principal amount of senior unsecured notes. The offering consists of €500 million of 1.250% Notes due 2025 and €500 million of 2.000% Notes due 2029. The net proceeds from this offering are expected to be approximately €988.4 million (or roughly $1.127 billion) after deducting estimated expenses. These proceeds are intended to primarily repay the Company's outstanding commercial paper borrowings, with any remaining funds designated for general corporate purposes. This move indicates a strategic shift in Emerson's debt management, replacing short-term commercial paper with longer-term, fixed-rate debt. The Notes will rank equally with the Company's existing and future unsecured and unsubordinated debt.
Key Highlights
- 1Emerson Electric Co. priced a €1 billion senior unsecured notes offering.
- 2The offering includes €500 million of 1.250% Notes due 2025 and €500 million of 2.000% Notes due 2029.
- 3Expected net proceeds are approximately €988.4 million (or ~$1.127 billion) after expenses.
- 4Proceeds will be primarily used to repay commercial paper borrowings.
- 5The Notes are senior unsecured obligations, ranking equally with existing and future unsecured and unsubordinated debt.
- 6The offering is expected to close on January 15, 2019.
- 7The Notes are being offered under Emerson's existing automatic shelf registration statement filed in November 2017.