Summary
Rockwell Automation, Inc. (ROK) filed an 8-K on February 17, 2015, to report the completion of a significant debt financing. The company successfully issued and sold $600 million in aggregate principal amount of notes, comprised of $300 million of 2.050% Notes due March 1, 2020, and $300 million of 2.875% Notes due March 1, 2025. The net proceeds from this offering amounted to approximately $594.2 million after deducting underwriter discounts and expenses. This debt issuance was conducted through an underwritten public offering under the company's effective Form S-3 shelf registration statement. The proceeds are expected to be used for general corporate purposes, although specific use is not detailed in this filing. The company has also outlined terms related to potential redemption of these notes, including optional redemption at specified prices and rates, as well as a provision for noteholders to require repurchase in the event of a Change of Control Repurchase Event.
Key Highlights
- 1Rockwell Automation completed a $600 million debt offering consisting of two tranches: $300 million in 2.050% Notes due 2020 and $300 million in 2.875% Notes due 2025.
- 2The net proceeds from the offering were approximately $594.2 million.
- 3The offering was conducted under an automatic shelf registration statement filed on Form S-3.
- 4The notes are unsecured and rank equally with existing and future unsecured indebtedness of the company.
- 5The company has the option to redeem the notes at various points before maturity under specific conditions and redemption prices.
- 6Noteholders have the right to require repurchase at 101% of principal plus accrued interest in the event of a Change of Control Repurchase Event.