Summary
Emerson Electric Co. (EMR) announced on May 17, 2019, the pricing of a public offering of €500 million aggregate principal amount of its 0.375% Notes due 2024. The offering is being conducted under the company's existing automatic shelf registration statement. The notes are being sold to underwriters at a discount and will be offered to the public at a slightly higher price, with an expected closing date of May 22, 2019. The primary use of the net proceeds, which are estimated to be approximately €498.2 million, will be to repay existing commercial paper borrowings and for general corporate purposes. These senior unsecured notes will rank equally with the company's other unsecured and unsubordinated debt. This debt issuance indicates a strategic move by Emerson to manage its short-term debt obligations and maintain financial flexibility.
Key Highlights
- 1Emerson Electric Co. priced a public offering of €500 million in 0.375% Notes due 2024.
- 2The offering is being made under Emerson's effective shelf registration statement filed in November 2017.
- 3Net proceeds are expected to be approximately €498.2 million, to be used primarily for repaying commercial paper and general corporate purposes.
- 4The notes are senior unsecured obligations, ranking equally with existing and future unsecured and unsubordinated debt.
- 5The offering is expected to close on May 22, 2019.
- 6Several major financial institutions are acting as underwriters for the offering.