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Friday, October 21, 2016

Power & Automation Group ABB Close $2.5-billion Bond Offer

May 10, 2012

ABB announce its subsidiary, ABB Finance (USA) has already successfully closed the bond offering it recently launched

Details of the bond offering are as follows:

The bonds, which are registered with the U.S. Securities and Exchange Commission, are guaranteed by ABB Ltd and consist of three series with maturities of 5, 10 and 30 years:

  • $500,000,000 1.625% notes due 2017
$1,250,000,000 2.875% notes due 2022
$750,000,000 4.375% notes due 2042

This constitutes the largest-ever bond offering completed by ABB. The net proceeds of the issue will be used for general corporate purposes, including the previously-announced acquisition of Thomas & Betts Corporation.

As a result of this offering, ABB has cancelled the $4 billion credit agreement it had entered into in connection with the Thomas & Betts acquisition.

”We’re extremely pleased with the positive response to our offering,” said Michel Demaré, 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.”

As announced on April 25, 2012, ABB Ltd has also extended a guarantee to the $600,000,000 aggregate principal amount of 2.50% notes due 2016 and $650,000,000 aggregate principal amount of 4.00% notes due 2021 issued by ABB Treasury Center (USA) Inc. in June of last year to provide comparable credit support to its other outstanding U.S. bonds.

ABB is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 135,000 people.


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