Eaton Raises USD700 Million in Public Offering of 3.103% Notes Due 2027

Published: Sep 06 2017
Deal Summary

Eaton Corporation plc, a power management company and offers electrical products, has completed the public offering of 3.103% notes, due September 15, 2027, for aggregate gross proceeds of USD700 million. The notes were issued at 100% of the principal amount, and will yield 3.103% upon maturity. The company received net proceeds of approximately USD695.45 million.

Interest on notes will be paid semi-annually on March 15 and September 15 of each year, beginning on March 15, 2018. Prior to June 15, 2027, the notes may be redeemed at any time at the option of the company, in whole or in part, at the greater of (i) 100% of the principal amount of the notes to be redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the notes being redeemed from the date of redemption to the applicable par call date discounted to the redemption date on an annual basis at the Treasury Rate, plus 15 basis points, plus, accrued and unpaid interest on the notes being redeemed to, but not including, the redemption date. At any time on or after the applicable par call date, the company may redeem the notes, in whole or in part, at a redemption price equal to 100% of the principal amount thereof to be redeemed, plus accrued and unpaid interest, if any, to, but not including, the redemption date.

The obligations under the notes will be fully, unconditionally and irrevocably guaranteed, on a senior unsecured basis, by the Eaton Corporation and its Subsidiaries Eaton Corporation plc, Cooper B-Line, Inc., Cooper Bussmann, LLC, Cooper Crouse-Hinds, LLC, Cooper Industries Unlimited Company, Cooper Lighting, LLC, Cooper Offshore Holdings S.a r.l., Cooper Power Systems, LLC, Cooper Wiring Devices, Inc., Eaton Aeroquip LLC, Eaton Aerospace LLC, Eaton Capital Unlimited Company, Eaton Controls (Luxembourg) S.a r.l., Eaton Electric Holdings, LLC, Eaton Hydraulics LLC, Eaton Leasing Corporation, Eaton Technologies (Luxembourg) S.a r.l., Eaton US Holdings, Inc., Turlock B.V., Wright Line Holding, Inc. and Wright Line LLC.

Concurrently, the company completed the offering of 3.915% notes, due September 15, 2047, for aggregate gross proceeds of USD300 million.

Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Inc acted as joint book-running managers; Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, Barclays Capital Inc., BNP Paribas Securities Corp., BNY Mellon Capital Markets LLC, Credit Suisse Securities (USA) LLC, HSBC Securities (USA), Inc., KeyBanc Capital Markets Inc., Loop Capital Markets, LLC, PNC Capital Markets LLC and Wells Fargo Securities, LLC acted as co-managers, while Lizbeth L. Wright, Loyens & Loeff NV and Linklaters LLP acted as legal advisors to the company for the offering.

The company intends to use the net proceeds to repay the outstanding notes.

Deal History:

Announced/Pricing: On September 6, 2017, Eaton priced the public offering of 3.103% notes, due September 15, 2027, for aggregate gross proceeds of USD700 million.

Filing: On February 26, 2015, Eaton filed registration statement with the US Securities and Exchange Commission for public offering of securities including, debt securities, guarantees, preference shares, ordinary shares, depository shares, warrants and units. The company from time to time may offer the securities separately or together in any combination.

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