By Anna Prior
Ingersoll-Rand PLC (>> Ingersoll-Rand PLC) said Friday its security business unit, Allegion, has completed $1.3 billion in financing using loans and bonds.
Late last year, the diversified industrial company said it plans to spin off Allegion, consisting of Ingersoll-Rand's commercial and residential security businesses, into a standalone company as part of a broader compromise with Trian Fund Management LP. The spinoff is slated to happen by the end of the year.
The new company will be headed by David Petratis, who has been chief executive of Quanex Building Products Corp. (>> Quanex Building Products Corporation), and will manufacture door locks and locking systems for residential and commercial buildings.
On Friday, Ingersoll-Rand said Allegion completed an offering of $300 million of senior notes, as well as the syndication of $1 billion senior secured term loan facilities.
Allegion plans to use the net proceeds from the offering of the notes and the senior secured term loan facilities to pay a special cash distribution to Ingersoll-Rand prior to the proposed spinoff, with any remaining amounts used for general corporate purposes, said Ingersoll-Rand.
In July, Ingersoll-Rand reported its second-quarter profit fell 13% as higher expenses and tax provisions wiped out the company's rise in revenue.
Shares, inactive after hours, closed Friday at $65.42. Through the close, the stock has risen 36% since the start of the year.
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