Summary
Honeywell International Inc. (HON) filed an 8-K on August 18, 2020, detailing significant financial transactions. The company completed a public offering of $3 billion in senior notes, comprising $2.5 billion in fixed-rate notes due 2022 with a 0.483% coupon and $0.5 billion in floating-rate notes due 2022. This issuance was made under an existing shelf registration statement. Concurrently, Honeywell announced its intent to fully prepay its $3 billion Delayed Draw Term Loan, effective August 20, 2020. This action will extinguish all outstanding borrowings and commitments under that agreement. These moves indicate proactive debt management by the company, replacing existing debt with new, lower-cost fixed-rate financing and eliminating a significant credit facility.
Key Highlights
- 1Completed a $3 billion public offering of senior notes due 2022.
- 2The offering includes $2.5 billion in 0.483% fixed-rate senior notes.
- 3The offering also includes $0.5 billion in floating-rate senior notes.
- 4These notes were issued under Honeywell's existing Form S-3 shelf registration statement.
- 5Announced full prepayment of a $3 billion Delayed Draw Term Loan, effective August 20, 2020.
- 6Upon prepayment, there will be no outstanding borrowings or remaining commitments under the Delayed Draw Term Loan Agreement.