Stanley Black&Decker Inc. 's $650 Million Equity Units Assigned 'BBB+' Issue-Level Rating

NEW YORK (S&P Global Ratings) May 11, 2017--S&P Global Ratings today assigned its 'BBB+' issue-level rating to New Britain, Conn.-based Stanley Black&Decker Inc.'s $650 million equity units consisting of a purchase contract and one share of 0% series C cumulative perpetual convertible preferred stock. We accord high equity content to this instrument because we expect that the convertible preferred stock will be converted to equity or be repaid with subsequent remarketing proceeds in 2020. The company will receive a second $650 million tranche of common equity proceeds in 2020, which it may use to settle the convertible preferred stock. The company plans to use the proceeds from the initial offering for general corporate purposes, including the repayment of

...NEW YORK (S&P Global Ratings) May 11, 2017--S&P Global Ratings today assigned its '###+' issue-level rating to New Britain, Conn.-based Stanley Black & Decker Inc.'s $650 million equity units consisting of a purchase contract and one share of 0% series C cumulative perpetual convertible preferred stock. We accord high equity content to this instrument because we expect that the convertible preferred stock will be converted to equity or be repaid with subsequent remarketing proceeds in 2020. The company will receive a second $650 million tranche of common equity proceeds in 2020, which it may use to settle the convertible preferred stock. The company plans to use the proceeds from the initial offering for general corporate purposes, including the repayment of its short-term borrowings, which totaled $1.1 billion as of April 1, 2017. The company used these short-term borrowings to partially fund its recent acquisitions of Newell Tools and Sears' Craftsman brand for a total of about $2.35...

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