Summary
Eaton Corp plc (ETN) has announced the execution of a Terms Agreement on August 16, 2022, to issue $2.0 billion in aggregate principal amount of senior notes. This offering includes both 4.150% sustainability-linked senior notes due 2033 and 4.700% senior notes due 2052. The net proceeds are estimated to be approximately $1.98 billion after deducting underwriting discounts and expenses. The primary use of these proceeds is to redeem Eaton's outstanding 2.750% senior notes due 2022 and 3.68% senior notes due 2023. Any remaining funds will be allocated for general corporate purposes. This strategic move aims to refinance existing debt, potentially at different interest rates and maturity profiles, while also highlighting the company's commitment to sustainability through the issuance of linked notes. The offering is expected to close around August 23, 2022.
Key Highlights
- 1Eaton Corp plc to issue $2.0 billion in senior notes across two tranches.
- 2Includes 4.150% sustainability-linked senior notes due 2033.
- 3Includes 4.700% senior notes due 2052.
- 4Net proceeds estimated at $1.98 billion.
- 5Proceeds designated for redemption of 2.750% senior notes due 2022 and 3.68% senior notes due 2023.
- 6Remaining proceeds for general corporate purposes.
- 7Offering expected to close on or about August 23, 2022.