ABB Closes $2.5-billion Bond Offering

Power and technology group ABB Ltd. (ABBN.VX) Wednesday said it has successfully closed its largest ever bond offering when it sold $2.5-billion worth of securities.

The bonds, which are registered with the U.S. Securities and Exchange Commission, are guaranteed by ABB and consist of three series with maturities of five, 10 and 30 years.

The Zurich-based company sold $500 million of bonds due in 2017 at 1.625%, $1.25 billion of bonds due in 2022 at 2.875%, and $750 million of 30 year bonds at 4.375%.

Net proceeds will be used for general corporate purposes, including the acquisition of Thomas & Betts Corp. (TNB), the U.S. low voltage products company ABB announced it was buying for $4.9 billion in January.

As a result of this offering, ABB has cancelled the $4 billion credit agreement it had entered into in connection with the Thomas & Betts purchase.

"We're extremely pleased with the positive response to our offering," said Michel Demare, ABB's chief financial officer.

"This transaction further extends the maturity of our long-term debt and gives us additional financial strength and flexibility at some of the lowest rates ever achieved in the U.S. credit market."

-By John Revill, Dow Jones Newswires; [phone] ; [e-mail]