Why is Honeywell issuing new senior notes?

While the specific use of proceeds is not detailed in this 8-K, debt offerings like this are typically undertaken to raise capital for various corporate purposes, which can include funding operations, capital expenditures, research and development, share repurchases, acquisitions, or refinancing existing debt.

What is the significance of the different interest rates and maturity dates for the notes?

The 3.875% rate on the 2014 notes and the 5.000% rate on the 2019 notes represent the cost of borrowing for Honeywell. The difference in rates likely reflects market conditions, the perceived credit risk, and the longer term of the 2019 notes, which typically command a higher interest rate. The maturity dates (2014 and 2019) indicate when Honeywell is obligated to repay the principal amount of these notes.

How does this debt offering affect Honeywell's financial health?

Issuing debt increases Honeywell's leverage and financial obligations. Investors should consider the company's ability to service this new debt, meaning its capacity to make timely interest payments and repay the principal upon maturity. The use of the proceeds will also be a key factor in assessing the long-term impact on financial health.

What does 'furnished pursuant to Item 7.01 Regulation FD Disclosure' mean for investors?

This means the information, including the press release, is being made available to the public to ensure fair disclosure of material information. Importantly, under Regulation FD, this information is generally not considered 'filed' with the SEC for liability purposes under Section 18 of the Exchange Act, nor is it automatically incorporated into other SEC filings. It's primarily for timely dissemination.

HON/HONIV 8-K: Regulation FD

Summary

This Form 8-K filing by Honeywell International Inc. (HON) on February 17, 2009, primarily announces the commencement of a significant debt offering. The company is seeking to raise a total of $1.5 billion through the issuance of two tranches of senior notes: $600 million in 3.875% Senior Notes due 2014 and $900 million in 5.000% Senior Notes due 2019. This offering indicates a strategic move by Honeywell to secure substantial capital, likely to fund ongoing operations, capital expenditures, or potential acquisitions. Investors should note the interest rates and maturity dates as they represent the cost of borrowing for the company and the timeline for repayment. The disclosure of this offering is made in compliance with Regulation FD, ensuring all investors receive timely and non-discriminatory information.

Key Highlights

1Honeywell International Inc. announced a debt offering on February 17, 2009.
2The company is offering $600 million in 3.875% Senior Notes due 2014.
3An additional $900 million in 5.000% Senior Notes due 2019 is also being offered.
4The total aggregate principal amount of the debt offering is $1.5 billion.
5The press release detailing this offering is furnished as an exhibit to the 8-K.
6The disclosure is made under Regulation FD, ensuring fair dissemination of information.

HONEYWELL INTERNATIONAL INC 8-K Report, Regulation FD Disclosure (Feb 17, 2009)

Summary

Key Highlights

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