Stanley Black & Decker, Inc. (NYSE: SWK) (the “Company”) announced today that it priced its offering of $400 million aggregate principal amount of 5.75% Fixed-to-Floating Junior Subordinated Debentures due 2053 (the “Debentures”). The offering is being made under the Company’s existing shelf registration statement previously filed with the Securities and Exchange Commission (the “SEC”) and is expected to close on December 3, 2013.
The Debentures will bear interest from the date they are issued to, but excluding, December 15, 2018, at an annual rate of 5.75%, payable semi-annually in arrears. From, and including, December 15, 2018, the Debentures will bear interest at an annual rate equal to three-month LIBOR plus 4.304%, payable quarterly in arrears. The Company will be able to defer interest payments on the Debentures during one or more deferral periods for up to five consecutive years per deferral period.
The Company intends to use the net proceeds from the offering for general corporate purposes, including repayment of short term borrowings.
The Company is concurrently offering 3,000,000 Equity Units. The Equity Units will initially consist of $300 million aggregate principal amount of junior subordinated notes due 2018 and contracts obligating the investors to purchase, for an aggregate of $300 million, shares of common stock. The Company has granted to the underwriters an option to purchase an additional 450,000 Equity Units to cover over-allotments. The completion of the concurrent Equity Units offering is not subject to the completion of the offering of the Debentures and the completion of the offering of the Debentures is not subject to the completion of the concurrent Equity Units offering.
Deutsche Bank Securities Inc., Goldman, Sachs & Co. and Wells Fargo Securities, LLC are acting as joint book-running managers of this offering.
This press release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sales of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offering of the Debentures will be made only by means of a prospectus and a related prospectus supplement.