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Ingersoll Rand Refinances Debt, Upgraded to Investment Grade

Ingersoll Rand Inc. has successfully completed a series of financial transactions, including a $3,300 million senior unsecured bond offering and a new $2,600 million senior unsecured revolving credit facility. The company raised $3,276 million in net proceeds from the bond offering, with $1,236 million used to repay term loans and $2,000 million to partially fund the cash consideration for the previously announced ILC Dover acquisition. The remainder of the net proceeds will be allocated for general corporate purposes.

The bond offering was split across 5 tranches with varying maturities, extending the weighted average maturity of the debt portfolio. Additionally, the company established a new five-year senior unsecured revolving credit facility.

Ingersoll Rand's efforts to refinance its debt portfolio have resulted in the transformation to a fully unsecured investment grade profile. The company was also upgraded one notch by all three rating agencies, with the new ratings being bbb/bbb/baa2 from S&P, Fitch, and Moody’s, respectively. This upgrade reflects the consistent operating performance and restructuring of the capital structure to fully unsecured.

The Chief Financial Officer, Vikram Kini, stated, "Investor enthusiasm for the transactions speaks to the investors’ conviction in the company and confidence in the story and future outlook. The new revolving credit facility will bolster our liquidity and fortify an already very strong balance sheet."

These financial moves demonstrate Ingersoll Rand's commitment to strengthening its financial position and ensuring flexibility for future growth opportunities. Following these announcements, the company's shares moved 0.3%, and are now trading at a price of $91.26. If you want to know more, read the company's complete 8-K report here.

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