Item 1.01. Entry into a Material Definitive Agreement.
On August 17, 2021, Rockwell Automation, Inc. (the "Company") completed the
offering and sale of $600 million in aggregate principal amount of its 0.350%
Notes due August 15, 2023 (the "2023 Notes"), $450 million in aggregate
principal amount of its 1.750% Notes due August 15, 2031 (the "2031 Notes") and
$450 million in aggregate principal amount of its 2.800% Notes due August 15,
2061 (the "2061 Notes" and, together with the 2023 Notes and the 2031 Notes, the
"Notes") in an underwritten public offering (the "Offering"). The net proceeds
to the Company from the sale of the Notes, after deducting underwriter discounts
and expenses, are approximately $1,486.8 million. The Company intends to use the
net proceeds it received from the offering to partially fund the purchase price
in the Company's previously announced contemplated acquisition of Plex Systems
Holdings, Inc. (the "Plex Acquisition"). Net proceeds may be temporarily
invested before use.
The Notes were offered and sold by the Company pursuant to its automatic shelf
Registration Statement on Form S-3 (Registration Statement No. 333-228817) (the
"Registration Statement"), filed with the Securities and Exchange Commission
("SEC") on December 14, 2018, as supplemented by the final prospectus supplement
filed with the SEC on August 4, 2021.
The Notes were issued on August 17, 2021 pursuant to the Indenture, dated as of
December 1, 1996 (the "Indenture"), between the Company and The Bank of New York
Mellon Trust Company, N.A. (formerly known as The Bank of New York Trust
Company, N.A., as successor to Mellon Bank, N.A.), as trustee. The Indenture
contains covenants that require the Company to satisfy certain conditions in
order to incur debt secured by liens, engage in sale/leaseback transactions or
merge or consolidate with another entity. The Indenture also provides for
customary events of default. The Notes are expected to have the following terms.
The 2023 Notes will mature on August 15, 2023 and bear interest at a fixed rate
of 0.350% per annum. The 2031 Notes will mature on August 15, 2031 and bear
interest at a fixed rate of 1.750% per annum. The 2061 Notes will mature on
August 15, 2061 and bear interest at a fixed rate of 2.800% per annum. The
Company will pay interest on the Notes from August 17, 2021 semi-annually, in
arrears, on February 15 and August 15 of each year, beginning February 15, 2022.
The Notes will be unsecured and rank on a parity with all of the Company's other
existing and future unsecured indebtedness.
At its option, the Company may redeem the 2023 Notes at any time prior to
August 15, 2022 (twelve months prior to the maturity date for the 2023 Notes),
the 2031 Notes at any time prior to May 15, 2031 (three months prior to the
maturity date for the 2031 Notes) and the 2061 Notes at any time prior to
February 15, 2061 (six months prior to the maturity date for the 2061 Notes), in
each case, in whole or in part, at a redemption price equal to the greater of
(i) the principal amount of the Notes being redeemed and (ii) the sum of the
present values of the remaining scheduled payments of the Notes to be redeemed
if such Notes matured on August 15, 2022 (twelve months prior to the maturity
date for the 2023 Notes), in the case of the 2023 Notes, May 15, 2031 (three
months prior to the maturity date for the 2031 Notes), in the case of the 2031
Notes and February 15, 2061 (six months prior to the maturity date for the 2061
Notes), in the case of the 2061 Notes, in each case excluding interest accrued
as of the redemption date, discounted to the redemption date on a semiannual
basis at the applicable Treasury Rate (as defined in the Notes) plus 5 basis
points in the case of the 2023 Notes, 10 basis points in the case of the 2031
Notes and 15 basis points in the case of the 2061 Notes.
(Page 2 of 5 Pages)
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At its option, the Company may redeem the 2023 Notes at any time on and after
August 15, 2022 (twelve months prior to the maturity date for the 2023 Notes),
the 2031 Notes at any time on and after May 15, 2031 (three months prior to the
maturity date for the 2031 Notes) and the 2061 Notes at any time prior to
February 15, 2061 (six months prior to the maturity date for the 2061 Notes), in
each case, in whole or in part, at 100% of the aggregate principal amount of the
Notes to be redeemed, plus any accrued and unpaid interest on the Notes being
redeemed.
If (i) the consummation of the Plex Acquisition does not occur prior to 5:00
p.m., New York City time, on January 31, 2022, (ii) the Company notifies the
trustee and the holders of the 2031 Notes and 2061 Notes that the Company will
not pursue the consummation of the Plex Acquisition or (iii) the merger
agreement pursuant to which the Plex Acquisition is proposed to be consummated
has been terminated without the consummation of the Plex Acquisition, the
Company will be required to redeem all of the 2031 Notes and the 2061 Notes then
outstanding on the date of this special mandatory redemption at 101% of the
aggregate principal amount of such Notes then outstanding, plus accrued and
unpaid interest to, but not including, the date of the special mandatory
redemption.
If a change of control repurchase event (defined as the occurrence of both a
change of control and a below investment grade rating event) occurs, holders of
the Notes will have the right to require the Company to repurchase their Notes
at a price equal to 101% of the principal amount of the Notes repurchased, plus
any accrued and unpaid interest.
The above descriptions of certain terms and conditions of the 2023 Notes, the
2031 Notes and the 2061 Notes are qualified by reference to the full texts of
the form of 2023 Notes, form of 2031 Notes and form of 2061 Notes, copies of
which are filed herewith as Exhibits 4.1, 4.2 and 4.3, respectively, and are
incorporated herein by reference. The above description of certain terms and
conditions of the Indenture is qualified by reference to the full text of the
Indenture, a copy of which was filed as Exhibit 4-a to the Company's
Registration Statement on Form S-3 (Registration Statement No. 333-43071), and
is incorporated herein by reference.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
The information set forth under "Item 1.01. Entry into a Material Definitive
Agreement" of this Current Report on Form 8-K is incorporated herein by
reference.
Item 8.01. Other Events.
In connection with the offer and sale of the Notes pursuant to the Registration
Statement, the Company is filing an opinion and consent of counsel with respect
to the Notes as Exhibits 5 and 23 for incorporation by reference into the
Registration Statement.
(Page 3 of 5 Pages)
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Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
4.1 Form of certificate for the Company's 0.350% Notes due August 15, 2023.
4.2 Form of certificate for the Company's 1.750% Notes due August 15, 2031.
4.3 Form of certificate for the Company's 2.800% Notes due August 15, 2061.
5 Opinion of Norton Rose Fulbright US LLP.
23 Consent of Norton Rose Fulbright US LLP (included in Exhibit 5).
104 Cover Page Interactive Data File, formatted in inline XBRL.
(Page 4 of 5 Pages)
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