Summary
Honeywell International Inc. (HON) announced on November 18, 2013, the commencement of a significant debt offering. The company is seeking to raise capital through the issuance of $700 million in floating rate senior notes due 2015 and $300 million in fixed-rate senior notes due 2023, totaling $1 billion in aggregate principal amount. This move indicates Honeywell's proactive approach to managing its capital structure and funding its operations and strategic initiatives. Investors should note the specific terms of the notes, including the floating rate nature of the 2015 maturity, which suggests a strategy to mitigate interest rate risk for that portion of the debt, and the fixed 3.35% coupon for the longer-dated 2023 notes, providing certainty on interest expense for that tranche.
Key Highlights
- 1Honeywell commenced an offering of $700 million floating rate senior notes due 2015.
- 2Honeywell commenced an offering of $300 million 3.35% senior notes due 2023.
- 3The total aggregate principal amount of the debt offering is $1 billion.
- 4The filing was made on November 18, 2013, with an event date of November 17, 2013.
- 5The primary purpose of the filing is to disclose the debt offering via a press release.
- 6The information is furnished under Regulation FD and not deemed 'filed' for other purposes.