Cautious Approvals Of Ingersoll-Rand's Refinancing

MIKE OBEL

NEW YORK (AP) — Wall Street gave a tentative "thumbs up" Tuesday to the long-awaited debt refinancing of Ingersoll-Rand Co. Ltd., which borrowed heavily to transform itself into a diversified manufacturer.

Last year the 138-year-old Woodcliff Lake, N.J.-based company, which has long been a highly cyclical machinery maker, paid $10.1 billion for Piscataway, N.J.-based Trane Inc., which focuses almost exclusively on residential and commercial climate control. That acquisition culminated several years of divestitures and acquisitions that have remade the conglomerate.

When Ingersoll-Rand bought Trane it issued $1.5 billion of commercial paper and a $2.95 billion bridge loan that is set to expire this June.

Besides the deadline for paying off its debt, the global recession and collapsing demand for many of Ingersoll-Rand's products have squeezed its cash flow. Last year it lost $2.62 billion, or $8.73 per share, compared with a profit of nearly $4 billion, or $13.43 per share, the year before.

Late Monday, the company said it will offer a mix of senior notes to raise up to $1 billion.