Summary
Emerson Electric Co. (EMR) announced on April 28, 2020, the completion of a significant public offering of $1.5 billion in aggregate principal amount of notes. This offering comprised three tranches: $500 million of 1.800% Notes due 2027, $500 million of 1.950% Notes due 2030, and $500 million of 2.750% Notes due 2050. The net proceeds from this offering are expected to be approximately $1,487.5 million, after deducting estimated offering expenses. These proceeds are earmarked primarily for the repayment of commercial paper borrowings and to support general corporate purposes. This strategic move enhances the company's liquidity and financial flexibility, particularly in the context of existing debt obligations. The notes are senior unsecured obligations, ranking equally with the company's other unsecured and unsubordinated debt.
Key Highlights
- 1Completed a $1.5 billion public offering of senior unsecured notes.
- 2Offering consists of three tranches: 1.800% Notes due 2027 ($500M), 1.950% Notes due 2030 ($500M), and 2.750% Notes due 2050 ($500M).
- 3Net proceeds expected to be approximately $1,487.5 million.
- 4Proceeds will be used primarily to repay commercial paper borrowings.
- 5Funds also designated for general corporate purposes.
- 6The notes rank equally with existing and future unsecured and unsubordinated debt.
- 7The offering was made under Emerson's existing Form S-3 registration statement.