ABB Closes $2.5-billion Bond Offering
May 09 2012 - 4:50AM
Dow Jones News
Power and technology group ABB Ltd. (ABBN.VX) Wednesday said it
has successfully closed its largest ever bond offering when it sold
$2.5-billion worth of securities.
The bonds, which are registered with the U.S. Securities and
Exchange Commission, are guaranteed by ABB and consist of three
series with maturities of five, 10 and 30 years.
The Zurich-based company sold $500 million of bonds due in 2017
at 1.625%, $1.25 billion of bonds due in 2022 at 2.875%, and $750
million of 30 year bonds at 4.375%.
Net proceeds will be used for general corporate purposes,
including the acquisition of Thomas & Betts Corp. (TNB), the
U.S. low voltage products company ABB announced it was buying for
$4.9 billion in January.
As a result of this offering, ABB has cancelled the $4 billion
credit agreement it had entered into in connection with the Thomas
& Betts purchase.
"We're extremely pleased with the positive response to our
offering," said Michel Demare, ABB's chief financial officer.
"This transaction further extends the maturity of our long-term
debt and gives us additional financial strength and flexibility at
some of the lowest rates ever achieved in the U.S. credit
market."
-By John Revill, Dow Jones Newswires; +41 43 443 8042 ;
john.revill@dowjones.com
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