Diversified industrial manufacturer Eaton Corporation (NYSE:ETN) today announced that it has completed several financing transactions in advance of the Cooper Industries plc acquisition announced May 21, 2012. These transactions both enhance the company’s liquidity position and capitalize on favorable market conditions for investment grade corporate debt. With these actions, Eaton has begun to establish the permanent capital structure of the company associated with the closing of the Cooper acquisition expected this fall.
The completed transactions include:
Refinancing two revolving credit facilities that were to expire within
- Two new $750 million facilities have been put in place to replace two expiring $500 million facilities
- The new facilities will expire in June 2015, and June 2017
- Additionally, Eaton’s $500 million facility expiring in June 2016 was amended to contemplate the Cooper transaction
- Total committed credit in Eaton’s revolving credit facilities is now $2.0 billion, up from $1.5 billion
- Increasing the capacity of Eaton’s commercial paper program to $2.0 billion from $1.5 billion
Issuing $300 million of 9-year notes and $300 million of 11-year notes
- Achieved historically low coupons of 3.47% on the 9-year notes and 3.68% on the 11-year notes
The additional credit capacity, liquidity and low-cost debt actions were taken to enhance the company’s capital structure ahead of the Cooper acquisition. All three credit facilities will remain effective and in place under the new Irish parent company.
Eaton Corporation is a diversified power management company with more than 100 years of experience providing energy-efficient solutions that help our customers effectively manage electrical, hydraulic and mechanical power. With 2011 sales of $16.0 billion, Eaton is a global technology leader in electrical components, systems and services for power quality, distribution and control; hydraulics components, systems and services for industrial and mobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial and military use; and truck and automotive drivetrain and powertrain systems for performance, fuel economy and safety. Eaton has approximately 72,000 employees and sells products to customers in more than 150 countries. For more information, visit www.eaton.com.No Offer or Solicitation This communication is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote or approval in any jurisdiction pursuant to the acquisition or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
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