01—Abstract
Summary
Summary of the 8-K filed February 28, 2025. Cited figures are marked; the original filing is the authoritative source.
Emerson Electric Co. (EMR) announced on February 27, 2025, that it has successfully entered into agreements for a substantial debt offering, raising a total of €1 billion and $500 milliona.
This issuance includes €500 million of 3.000% Notes due 2031 and €500 million of 3.500% Notes due 2037, along with $500 millionb of 5.000% Notes due 2035. The net proceeds from these offerings are estimated to be approximately $1,536.7 million and are earmarked for general corporate purposes, repayment of commercial paper, and importantly, to fund a portion of the acquisition costs related to its proposed acquisition of Aspen Technology, Inc. (AspenTech). The company is actively seeking to list these new notes on the New York Stock Exchange.
The closing of these offerings is expected on March 4, 2025, and is not contingent on the completion of the AspenTech transaction, although there is no assurance that the AspenTech acquisition will be completed. This debt issuance provides Emerson with significant capital flexibility for its strategic objectives and operational needs.
02—Key points
Key Highlights
- Emerson Electric Co. completed a dual currency debt offering, raising €1 billion and $500 million.
- The offering comprises €500 million in 3.000% Notes due 2031, €500 million in 3.500% Notes due 2037, and $500 million in 5.000% Notes due 2035.
- Estimated net proceeds from the offerings are approximately $1,536.7 million.
- Proceeds will be used for general corporate purposes, commercial paper repayment, and to partially fund the AspenTech acquisition.
- The offering is not conditioned on the completion of the AspenTech acquisition.
- The company is in the process of applying to list the new notes on the New York Stock Exchange.
- Closing for the note offerings is expected on March 4, 2025.
03—Questions
Frequently Asked Questions
What is the total amount of debt Emerson Electric Co. is issuing?
Emerson Electric Co. is issuing a total of €1 billion (comprising €500 million of 3.000% Notes due 2031 and €500 million of 3.500% Notes due 2037) and $500 million of 5.000% Notes due 2035.
What will the proceeds from these debt offerings be used for?
The net proceeds are expected to be approximately $1,536.7 million and will be used for general corporate purposes, to repay commercial paper borrowings, and to fund a portion of the purchase price, fees, and expenses related to the proposed acquisition of Aspen Technology, Inc. (AspenTech).
Is the debt offering dependent on the completion of the AspenTech acquisition?
No, the offering of these notes is not conditioned upon the completion of the AspenTech Transaction. However, the company notes that there can be no assurance that the conditions for the AspenTech Transaction will be satisfied or that the transaction will be completed.
When is the expected closing date for these note offerings?
The closing of the debt offerings is expected to occur on March 4, 2025.
04—Continue