Investing
Eaton's Secondary Pricing Reflects Discounting (ETN)
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Eaton Corp. (NYSE: ETN) priced a common stock offering for 17.5 million shares at $84.00 per share for gross proceeds of $1.43 billion this morning. Its market cap is roughly $12.4 billion.
Joint book-running managers, Citi, JPMorgan, and Morgan Stanley, and other co-managers were granted 1.75 million shares for over-allotments. Banc of America, KeyBanc Capital Markets were also in the syndicates and the smaller co-managers are as follows: Barclays Capital, BNP Paribas, BNY Capital Markets, Deutsche Bank Securities, Goldman Sachs, and Merrill Lynch.
The proceeds for the electrical systems manufacturer will be used for debt repayments from two previous acquisitions.
Shares had been sliding ahead of this pricing, with levels of over $90.00 seen just last Friday. Eaton shares are down this morning by $0.77 to $84.12. The 52-week range is $66.27 to $104.12. Based on that huge haircut shares have seen ahead of the pricing, this looks like the dilution has been mostly factored in.
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Rachel Lopez
April 23, 2008
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