Key insights
- Ecolab is issuing $5B in bonds to finance its acquisition of CoolIT, a cooling technology provider for AI data centers. The bond offering's yield tightened during syndication. While the deal itself is positive for Ecolab's growth prospects, the increased debt burden could exert slight downward pressure on the stock in the short term.
Investing.com -- Ecolab Inc. (NYSE:ECL) has launched a $5 billion sale of investment-grade bonds to help finance its acquisition of CoolIT Systems Inc.
The water and hygiene services supplier was seeking to sell around $4 billion of notes earlier Tuesday, according to Bloomberg News, citing people familiar with the matter.
The four-part offering involves bonds maturing in three to 10 years, according to a person with knowledge of the matter. A floating-rate tranche was dropped during syndication. The longest-tenored note is set to yield 0.73 percentage point above Treasuries, versus initial talk of about 0.95 percentage point, the person added.
Ecolab agreed in March to buy CoolIT, which develops cooling technology for AI data centers, from funds managed by KKR & Co. (NYSE:KKR) for $4.75 billion. That deal is expected to close in the third quarter. The firm said last month it entered a term credit agreement for a loan facility to fund the acquisition.
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