BorgWarner today announced that it priced a public offering of $1.0 billion aggregate principal amount of fixed rate senior notes, consisting of the following:
- $500 million of 3.375% senior notes due 2025, and
- $500 million of 4.375% senior notes due 2045.
The company expects that it will receive approximately $988 million of net proceeds from the offering after deducting underwriting discounts, commissions and expenses of the offering. The company intends to use the net proceeds for general corporate purposes, including the repayment of U.S. short-term indebtedness, and to partially fund its previously announced $1.0 billion share repurchase program. The offering is expected to close on March 16, 2015, subject to customary closing conditions.
Deutsche Bank Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and
Wells Fargo Securities, LLC are serving as joint book-running managers for the offering.
