Business Context and Reporting Period
Company: Emerson Electric Co.
Filing Type: Form 8-K (Current Report)
Date of Report: January 15, 2019
Event: Completion of a public offering of senior unsecured notes.
Key Financial Metrics
This filing details a debt issuance event rather than operational financial performance. Key metrics related to the transaction include:
- Total Principal Amount Issued: €1,000 million (€500 million in 2025 Notes + €500 million in 2029 Notes).
- 2025 Notes Interest Rate: 1.250% per annum.
- 2029 Notes Interest Rate: 2.000% per annum.
- Expected Net Proceeds: Approximately €988.4 million (approx. $1.127 billion) before deducting estimated offering expenses.
- Debt Structure: Senior unsecured obligations ranking equally with existing and future unsecured debt.
Material Changes
The primary material change is the expansion of the Company's debt portfolio through the issuance of the 2025 and 2029 Notes. The filing does not provide comparative financial data (e.g., revenue or profit changes) against prior periods as this is a transactional report.
Management Commentary and Use of Proceeds
Management indicated the following regarding the transaction:
- Use of Proceeds: Net proceeds will be used primarily to repay commercial paper borrowings and for general corporate purposes.
- Redemption Terms: The Company may redeem any or all of the Notes prior to maturity at redemption prices described in the Note documents.
- Denominations: Notes are issued in minimum denominations of €100,000 and integral multiples of €1,000 in excess thereof.
Investor Verification Checklist
- Verify the exact exchange rate used to convert the €988.4 million net proceeds to the approximate $1.127 billion USD figure.
- Review the specific redemption prices and call dates detailed in the attached 2025 and 2029 Note exhibits (Exhibits 4.4 and 4.5).
- Confirm the specific amount of commercial paper borrowings intended to be repaid with these proceeds.
- Check for any subsequent filings regarding the final closing of the offering expenses.