© Reuters.  Allegion announces pricing of $800M of senior notes© Reuters. Allegion announces pricing of $800M of senior notes

  • Allegion (NYSE:ALLE) priced the previously announced offering by its wholly-owned subsidiary, Allegion US Holding Company of $400M aggregate principal amount of 3.200% senior notes due 2024 and $400M aggregate principal amount of 3.550% senior notes due 2027.
  • The offering is expected to close on October 2, and will be guaranteed by Allegion upon their issuance.
  • Net proceeds from the offering will be utilised to redeem in full its outstanding 5.750% senior notes due 2021 and its outstanding 5.875% senior notes due 2023; to repay borrowings under its senior revolving credit facility; and, any remaining net proceeds for general corporate purposes.
  • The Company expects to realize approximately $13M in annualized interest expense savings as a result of the offering, the redemption of its outstanding senior notes and the replacement of its senior secured credit facilities with new senior unsecured credit facilities.
  • The Company expects to recognize a $47M charge associated with the redemption of the currently outstanding senior notes and the write-off of previously capitalized debt issue costs in 2017.
  • J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo (NYSE:WFC) Securities, LLC are acting as joint book-running managers.
  • Press Release
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