8-KOther EventsExhibits & Filings

W.W. GRAINGER, INC. 8-K Report, Corporate Update (Jun 11, 2015)

Filed June 11, 2015For Securities:GWW

Summary

W.W. Grainger, Inc. (GWW) filed an 8-K on June 11, 2015, to report the completion of a public offering and issuance of $1 billion in 4.60% Senior Notes due 2045. This transaction provides the company with significant long-term financing. The notes are senior unsecured obligations and mature in 2045. The company retains the flexibility to redeem the notes under specific conditions, including a "make-whole" provision before 2044 and at par value thereafter. Importantly, a change of control event would trigger an offer to purchase the notes at a premium. Investors should note that this debt issuance is a significant capital event for the company.

Key Highlights

  • 1Issuance of $1 billion in 4.60% Senior Notes due 2045.
  • 2Notes mature on June 15, 2045.
  • 3Interest payments are semi-annual (June 15 and December 15).
  • 4Company can redeem notes early at a make-whole price until December 15, 2044.
  • 5Redemption at 100% of principal plus accrued interest allowed after December 15, 2044.
  • 6Change of control event requires the company to offer to purchase notes at 101% of principal.
  • 7Financing is linked to a previously filed registration statement (File No. 333-203444).

Frequently Asked Questions

This 8-K filing reports the completion of W.W. Grainger, Inc.'s public offering and the issuance of $1 billion in 4.60% Senior Notes due 2045. It details the terms of these notes and their maturity.

The notes carry a 4.60% interest rate, mature on June 15, 2045, and pay interest semi-annually. They are senior unsecured obligations of the company.

The company can redeem the notes in whole or in part. Prior to December 15, 2044, redemption is at a "make-whole" price. On or after December 15, 2044, redemption can occur at 100% of the principal amount plus accrued interest. Additionally, a change of control event necessitates an offer to repurchase the notes at 101% of their principal amount.

The issuance of $1 billion in senior notes increases the company's long-term debt. This provides additional capital, which could be used for various corporate purposes such as investments, acquisitions, or operational needs, while also increasing financial leverage.