Lennox International Announces Pricing of $600 Million Senior Notes Offering

Rhea-AI Summary

Lennox International has announced the pricing of a $600 million senior notes offering, comprising of $300 million in 1.350% notes due 2025 and $300 million in 1.700% notes due 2027. The proceeds will be utilized to repay existing debt under its credit facility and for general corporate purposes. The offering is set to close on July 30, 2020, pending customary conditions. J.P. Morgan, Wells Fargo Securities, BofA Securities, and MUFG are the joint book-running managers. This offering is under an automatic shelf registration statement filed with the SEC.

Positive

• None.

Negative

• The company is incurring additional debt by issuing $600 million in senior notes, which could impact financial stability.
• Increased financial obligations may lead to higher interest expenses in future periods.

DALLAS, July 23, 2020 /PRNewswire/ -- Lennox International Inc. (NYSE: LII) today announced the pricing of an offering of $300 million of 1.350% notes due 2025 and $300 million of 1.700% notes due 2027. The company intends to use the net proceeds of the offering to repay indebtedness under its domestic credit facility and for general corporate purposes. The offering is scheduled to close on July 30, 2020, subject to customary closing conditions.

J.P. Morgan, Wells Fargo Securities, BofA Securities and MUFG are serving as the joint book-running managers of the offering.

The offering is being made under an automatic shelf registration statement filed with the Securities and Exchange Commission on October 21, 2019, as amended. The offering may be made only by means of a prospectus and related prospectus supplement.

Copies of the prospectus supplement and accompanying prospectus relating to the offering may be obtained from J.P. Morgan collect at 1-212-834-4533, Wells Fargo Securities toll-free at 1-800-645-3751, BofA Securities toll-free at 1-800-294-1322 and MUFG toll-free at 1-877-649-6848. An electronic copy of the registration statement and prospectus supplement, together with the prospectus, is available on the SEC's website at www.sec.gov.

This news release does not constitute an offer to sell or a solicitation of any offer to buy such securities nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

About Lennox International Inc.

Lennox International Inc. is a global leader in the heating, air conditioning, and refrigeration markets. Lennox International Inc. stock is listed on the New York Stock Exchange and traded under the symbol "LII".

Caution Concerning Forward Looking Statements

The statements in this news release that are not historical statements, including statements regarding the use of proceeds and the closing of the offering, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on information currently available as well as management's assumptions and beliefs today. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from the results expressed or implied by the statements, and investors should not place undue reliance on them. Risks and uncertainties that could cause actual results to differ materially from such statements include, but are not limited to: conditions to, or changes in the timing of, proposed transactions and changes in the conditions of the securities market, particularly the markets for debt securities. For information concerning these and other risks and uncertainties, see LII's publicly available filings with the Securities and Exchange Commission. LII disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Contact

Lennox International Inc.
Investor Relations
Steve Harrison (972) 497-6670

 

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SOURCE Lennox International Inc.

FAQ

What is the purpose of Lennox International's $600 million notes offering?

The purpose is to repay existing debt and for general corporate purposes.

When does Lennox International's notes offering close?

The offering is scheduled to close on July 30, 2020.

What are the interest rates and maturities for Lennox International's new notes?

The offering includes $300 million in 1.350% notes due in 2025 and $300 million in 1.700% notes due in 2027.

Who are the book-running managers for Lennox International's notes offering?

J.P. Morgan, Wells Fargo Securities, BofA Securities, and MUFG are serving as the joint book-running managers.

Under which registration statement is Lennox International's notes offering being made?

The offering is made under an automatic shelf registration statement filed with the SEC on October 21, 2019.