Eaton completes $750 million public debt offering

Diversified industrial manufacturer Eaton Corporation recently announced the completion of a senior notes offering consisting of $300 million of 4.90 percent notes due 2013 and $450 million of 5.60 percent notes due 2018.

Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and Morgan Stanley & Co. Incorporated were joint book-running managers for the offering. The notes offering was made pursuant to the company's effective shelf registration statement.

The proceeds of the public debt offering will be used to repay commercial paper issued under the backstop capacity provided by the bridge revolving credit facility entered into on Jan. 25, according to the company. This bridge facility was entered into to fund the acquisitions of The Moeller Group and Phoenixtec Power Company Ltd. The offering of these notes completes the permanent refinancing of this facility.

“We are pleased to conclude the permanent financing plan for the Moeller and Phoenixtec acquisitions,” says Richard H. Fearon, Eaton executive vice president - chief financial and planning officer. “This debt offering, along with our recent $1.5 billion equity issuance and the increase of our long-term credit facilities to $1.7 billion, places our capitalization ratios near our target levels. With our refinanced balance sheet, additional liquidity and strong cash flow, we believe we are well positioned to continue to execute our growth strategy while maintaining our credit profile as an ‘A’ long-term credit.”