Trinity Acquisition plc (“Trinity”), an indirect wholly-owned subsidiary of Willis Towers Watson Public Limited Company WLTW, has made a registered offering of two series of senior unsecured notes aggregating $1 billion. The offering consists of 3.500% $450 million senior notes and 4.400% $550 million senior notes, scheduled to mature on Sep 15, 2021 and Mar 15 2026, respectively.
Willis Towers Watson, along with its certain direct and indirect subsidiaries, will fully and unconditionally guarantee the principal and interest payments on these notes.
Trinity plans to deploy the net proceeds from the offering to repay debts under Willis Tower Watson’s revolving credit facility and bridge loan facility.
This issuing of senior notes amid a low interest rate environment is a prudent way to procure funds. Capitalizing on the low interest rate environment helps companies manage their interest burden efficiently, thereby facilitating margin expansion.
Notably, as of Dec 31, 2015, Willis Tower Watson’s total debt was $3.3 billion compared with $2.3 billion at the end of 2014. This reflects an increase of 42.2%. The debt-to-equity ratio at year-end 2015 was 147%, up from 115% at the end 2014.
Shares of Willis Towers Watson dipped 2.2% in Friday’s trading session.
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