CLEVELAND … Diversified industrial manufacturer Eaton Corporation (NYSE:ETN) announced today that it has completed the refinancing of a $500 million, five-year revolving credit facility and has prefunded term debt maturities due in mid-2012. The new $500 million revolving credit facility maintains Eaton’s long-term revolving credit facilities at a total of $1.5 billion. The revolving credit facilities are used to support commercial paper borrowings. The new facility will expire June 16, 2016, replacing a $500 million facility that had been set to expire on September 1, 2011.
Additionally, Eaton issued $300 million of floating rate notes, maturing June 16, 2014. These notes will bear interest at a spread to 3-month LIBOR of 33 basis points, initially set at 0.575 percent. With this issuance, Eaton has taken advantage of historically low interest rates to prefund the maturity of its $300 million, 5.75 percent notes due in July 2012.
Eaton Corporation is a diversified power management company with 2010 sales of $13.7 billion. Celebrating its 100th anniversary in 2011, Eaton is a global technology leader in electrical components and systems for power quality, distribution and control; hydraulics components, systems and services for industrial and mobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial and military use; and truck and automotive drivetrain and powertrain systems for performance, fuel economy and safety. Eaton has approximately 70,000 employees and sells products to customers in more than 150 countries.
Donald Bullock (216) 523-5127 (Investor Relations)