Ingersoll-Rand Prices $1.1 Bln Debt Offering; Cuts Q4, FY14 Reported EPS Outlook

(RTTNews) - Ingersoll-Rand plc (IR) said Friday that it has priced a $1.1 billion debt offering consisting of $300 million aggregate principal amount of 2.625% notes due in 2020, $500 million aggregate principal amount of 3.550% notes due on 2024 and $300 million aggregate principal amount of 4.650% notes due on 2044.

The company plans to use all or a portion of the net proceeds from the offering of the Notes to fund the redemption of its existing $200 million aggregate principal amount of 5.50% senior notes due 2015 and $300 million aggregate principal amount of 4.75% senior notes due 2015 and fund its previously announced acquisition of Cameron International Corp.'s Centrifugal Compression division. The company expects to use any remaining proceeds for general corporate purposes.

To reflect the impact of the newly issued notes and the early redemption of the 2015 notes, the company lowered its fourth quarter estimate for reported earnings per share from continuing operations to a range of $0.63 to $0.67 from its prior estimate of $0.68 to $0.72 per share.

For the full year 2014, the company lowered its estimate for reported earnings per share from continuing operations to a range of $3.12 to $3.16 from its prior estimate of $3.17 to $3.21 per share.

Analysts polled by Thomson REuters currently expect the company to earn $0.74 per share for the fourth quarter and $3.24 per share for the full year 2014. Analysts' estimates typically exclude special items.