HG bonds: Stanley Black & Decker prices $1B to repay short-term debt; terms

Stanley Black & Decker Inc. on Feb. 22 completed a $1 billion public offering of senior notes in two parts. The issues were steady on the early secondary market this morning, trading at T+62 for the new 2.30% issue due 2025 (priced at T+62.5) and at a weighted average at T+109 for the 3.00% issue due 2032 (priced at T+110), according to MarketAxess.

The company intends to use the net proceeds from this offering for general corporate purposes, including repayment of indebtedness under its commercial paper facilities, according to regulatory filings. It reported $2.24 billion of short-term borrowings as of Jan. 1, 2022.

Stanley Black & Decker's nearest bond maturity is its $500 million issue of 3.40% notes due 2026. The company last tapped the bond markets in October 2020, when it priced $750 million of 2.75% 30-year notes due Nov. 15, 2050, at T+112.5. It earmarked the proceeds of that offering, along with short-term borrowings and cash on hand, to redeem in full $400 million of 3.4% notes due December 2021 and $754 million of 2.9% notes due November 2022.

The A/Baa1/A- corporate ratings reflect stable outlooks on all sides.

Terms: