Business Context and Reporting Period
Company: Emerson Electric Co.
Filing Type: Form 8-K (Current Report)
Report Date: May 17, 2019
Event Date: May 15, 2019
Context: The Company entered into a pricing agreement for a public offering of senior unsecured notes.
Key Financial Metrics
- Debt Issuance: €500 million aggregate principal amount of 0.375% Notes due 2024.
- Issue Price: 99.631% of principal amount.
- Public Offering Price: 99.931% of principal amount.
- Expected Net Proceeds: Approximately €498.2 million (approx. $560.0 million) before offering expenses.
- Use of Proceeds: Primarily to repay commercial paper borrowings and for general corporate purposes.
- Closing Date: Expected May 22, 2019.
Material Changes
This filing reports a new debt issuance event. The filing text does not provide comparative financial performance data (revenue, profit, cash flow, or margins) against prior periods, as this is a transactional report rather than a periodic financial statement.
Outlook, Risks, and Unusual Items
- Debt Structure: The Notes are senior unsecured obligations ranking equally with existing and future unsecured debt.
- Redemption: The Company may redeem the Notes prior to maturity at specified redemption prices.
- Denominations: Issued in minimum denominations of €100,000.
- Underwriters: Includes BNP Paribas, Citigroup, J.P. Morgan, Barclays, Deutsche Bank, HSBC, Merrill Lynch, and Wells Fargo.
- Related Parties: Wells Fargo Securities International Limited is an underwriter and an affiliate of the Trustee (Wells Fargo Bank, National Association).
Investor Verification Checklist
- Verify the final closing date and actual net proceeds received on or after May 22, 2019.
- Confirm the specific amount of commercial paper borrowings repaid with the proceeds.
- Review the full text of the Second Supplemental Indenture (Exhibit 4.1) for detailed redemption terms and covenants.
- Monitor the Company's total debt load and liquidity ratios following the issuance.