United Technologies Corp. (UTX) is offering $1 billion of equity
units, as the industrial conglomerate raises funds for its pending
$16.5 billion takeover of aerospace-parts maker Goodrich Corp.
(GR).
The company is offering 20 million equity units at $50 each,
according to a filing with the Securities and Exchange Commission.
The units will consist of a purchase contract and initially a 5%
beneficial ownership interest in $1,000 principal amount of the
company's junior subordinated notes that mature in 2022.
United Technologies has applied to list the units on the New
York Stock Exchange under the symbol "UTX PR A".
Last month the company sold $9.8 billion in bonds, the biggest
corporate-debt offering in three years, also to raise funds for the
deal, which is expected to close by late next month.
United Technologies reported its first-quarter profit slumped as
results took a hit from the planned shedding of certain
businesses--also to finance the planned Goodrich acquisition.
The company's shares closed Monday at $74.62 and were inactive
in recent premarket trading.