DUBLIN–(BUSINESS WIRE)–Allegion, a leading global provider of security products and solutions, today announced that it priced its previously announced offering by its subsidiary, Allegion US Holding Company, of $600 million aggregate principal amount of 5.411% senior notes due 2032. The offering is expected to close on June 22, 2022, subject to the satisfaction of customary closing conditions.
The notes will be guaranteed upon their issuance by Allegion.
Allegion intends to use all of the net proceeds from the senior notes offering, together with cash on hand and additional borrowings under its revolving credit facility, to finance the acquisition of Stanley Access Technologies LLC (“Access Technologies”) and assets related to the automatic entrance solutions business from Stanley Black & Decker, Inc. (NYSE: SWK), which is expected to close in the third quarter of 2022, subject to regulatory approval and customary closing conditions (the “transaction”). In the event that the transaction does not close as contemplated, Allegion intends to use the net proceeds of the offering for general corporate purposes, including repayment of outstanding indebtedness.
“Allegion is pleased to have obtained this financing ahead of our anticipated third-quarter closing of the Access Technologies business acquisition,” said Allegion Senior Vice President and Chief Financial Officer Mike Wagnes. “We believe the Access Technologies business and the addition of its product lines into the Allegion family will create a strong value proposition and new growth opportunities for our company that enhance shareholder value.”
Goldman Sachs & Co. LLC, BofA Securities, Inc. and J.P. Morgan Securities LLC are acting as joint book-running managers.
Allegion has filed an effective registration statement with the U.S. Securities and Exchange Commission (“SEC”) for the offering and encourages investors to read it (including the accompanying prospectus, the related prospectus supplement and the information incorporated by reference therein) for more complete information about Allegion and the offering. You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, copies may also be obtained by contacting Goldman Sachs & Co. LLC at the following address: 200 West Street, New York, New York, 10282, Attn: Prospectus Department, or by calling 1-866-471-2526; BofA Securities, Inc. at the following address: NC1-004-03-43, 200 North College Street, 3rd Floor, Charlotte, North Carolina, 28255-0001, Attn: Prospectus Department, or by calling 1-800-294-1322 or by emailing dg.prospectus_requests@baml.com; or J.P. Morgan Securities LLC at the following address: J.P. Morgan Securities LLC, 383 Madison Avenue, New York, New York, 10179, Attn: Investment Grade Syndicate Desk, 3rd Floor, or by calling collect 1-212-834-4533.
These securities are only offered by means of a prospectus and a prospectus supplement related to the offering. This press release is for informational purposes only and shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities, nor will there be any sales of securities mentioned in this press release in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
About Allegion
Allegion (NYSE: ALLE) is a global pioneer in seamless access, with leading brands like CISA®, Interflex®, LCN®, Schlage®, SimonsVoss® and Von Duprin®. Focusing on security around the door and adjacent areas, Allegion secures people and assets with a range of solutions for homes, businesses, schools and institutions. Allegion had $2.9 billion in revenue in 2021, and its security products are sold around the world. For more, visit www.allegion.com.
