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Industrial goods manufacturer Ingersoll-Rand Plc’s (IR - Analyst Report) wholly-owned subsidiary Allegion US Holding Company Inc recently completed the debt offering of $300 million worth of 5.75% senior notes.

At the same time, Allegion closed the syndication of $1 billion senior secured term loan facilities. These include two equal amounts of ‘tranche A’ and ‘tranche B’ term loan facilities due in 2018 and 2020, respectively. Allegion also obtained a new $500 million worth of senior secured revolving credit facility maturing in 2018.

Allegion intends to utilize the proceeds from the debt offering to pay a special cash dividend to Ingersoll prior to the proposed spin-off. In Dec 2012, Ingersoll had approved a spin-off plan of its commercial and residential security businesses. The company expects the divestiture to be completed prior to 2013 end.

In June, Ingersoll Rand completed the offering of $1.55 billion notes. The offering consisted of three tranches; viz., 2.875% Notes worth $350 million due in 2019, 4.25% Notes worth $700 million due in 2023 and 5.75% Notes worth $500 million due in 2043. The proceeds from the issue were used to pay-off the company’s 6.00% Senior Notes worth $600 million due in 2013 and 9.5% Senior Notes worth $655 million due in 2014. The remainder of the proceeds was used for the proposed spin-off.

Based in Montvale, NJ, Ingersoll designs, manufactures, sells and services a range of industrial and commercial products in the United States and internationally. Its product portfolio includes energy-efficient solutions, residential solutions, technology and security related services both in the domestic and international markets.

Ingersoll currently carries a Zacks Rank #2 (Buy). Other stocks that are worth a look in the industry include Gorman-Rupp Co. (GRC - Snapshot Report), Dover Corp. (DOV - Analyst Report) and The Middleby Corp. (MIDD - Analyst Report), each carrying a Zacks Rank #2 (Buy).

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