8-KFinancial EventsOther Events

ROCKWELL AUTOMATION, INC 8-K Report, Financial Obligation (Oct 12, 2011)

Filed October 12, 2011For Securities:ROK

Summary

Rockwell Automation, Inc. (ROK) filed an 8-K on October 12, 2011, reporting on significant financial activities related to its pension obligations. The company issued $275 million in unsecured commercial paper with maturities ranging from 1 to 52 days, bearing a weighted average interest rate of 0.21%. These short-term borrowings were primarily utilized to partially fund a $300 million voluntary contribution made to its U.S. qualified pension plan trust on October 11, 2011. In addition to this recent contribution, the company had also made a $150 million voluntary contribution to the same pension plan in September 2011, funded from existing cash. These actions signal a proactive approach by Rockwell Automation to address its pension liabilities, a key consideration for investors assessing the company's financial health and long-term commitments.

Key Highlights

  • 1Issuance of $275 million in unsecured commercial paper from October 6-11, 2011.
  • 2Weighted average interest rate on commercial paper was 0.21% per annum.
  • 3Commercial paper had maturities between 1 and 52 days.
  • 4Proceeds from commercial paper issuance partially funded a $300 million voluntary contribution to the U.S. qualified pension plan on October 11, 2011.
  • 5A separate $150 million voluntary contribution to the U.S. qualified pension plan was made in September 2011.
  • 6The September contribution was funded by existing cash on hand.
  • 7These contributions demonstrate a commitment to managing pension plan funding levels.

Frequently Asked Questions

The $275 million in commercial paper was issued to partially fund a $300 million voluntary contribution made to Rockwell Automation's U.S. qualified pension plan trust on October 11, 2011.

In addition to the $300 million contribution funded partially by the commercial paper issuance, the company made a $150 million voluntary contribution in September 2011, bringing the total voluntary contributions in the recent period to $450 million.

The weighted average interest rate on the $275 million of unsecured commercial paper was 0.21% per annum. The maturities ranged from 1 to 52 days, indicating very short-term financing.

While the $300 million contribution made in October 2011 was significant and partially funded by new debt, the company also made a $150 million contribution in September 2011. This indicates a continued focus on addressing pension plan funding throughout late 2011.