Item 1.01 Entry into a Material Definitive Agreement.
On November 16, 2017, Leggett & Platt, Incorporated (the “Company”) issued $500 million aggregate principal amount
of its 3.50% Senior Notes due 2027 (the “Notes”) pursuant to an underwriting agreement with J.P. Morgan Securities LLC, MUFG Securities Americas Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC, as representatives of
the several underwriters named therein (the “Underwriters”). The Underwriting Agreement was attached to our Current Report on Form
8-K,
which was filed November 15, 2017 and incorporated by
reference into Registration Statement (SEC
No. 333-203064).
The Notes were issued under a Senior Indenture, dated as of May 6, 2005, between the Company and U.S. Bank National Association, as
successor trustee (the “Indenture”). The Notes will rank equally with all of the Company’s other unsecured and unsubordinated debt.
The Notes will mature on November 15, 2027 unless earlier redeemed. They were issued only in denominations of $2,000 and integral
multiples of $1,000 in excess thereof. The Notes will bear interest at a rate of 3.50% per year, payable semi-annually in arrears on May 15 and November 15 of each year, commencing on May 15, 2018. Interest will be computed on
the basis of a
360-day
year of twelve
30-day
months, and begin accruing from November 16, 2017.
On or after August 15, 2027 (three months prior to the maturity date of the Notes (the “Par Call Date”)), we may redeem the
Notes, in whole or in part, at any time and from time to time, on at least 30 days, but not more than 60 days, prior notice mailed to each holder of the Notes to be redeemed, at a redemption price equal to 100% of the principal amount of the Notes
being redeemed plus accrued and unpaid interest to, but excluding, the redemption date.
Prior to the Par Call Date, we may redeem the
Notes, in whole or in part, at any time and from time to time, at our option, at a redemption price equal to the greater of:
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100% of the principal amount of the Notes being redeemed; and
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the sum of the present values of the remaining scheduled payments of principal and interest thereon that would be due if the Notes to be redeemed matured on the Par Call Date (not including any portion of such payments
of interest accrued as of the date of redemption), discounted to the date of redemption on a semi-annual basis (assuming a
360-day
year consisting of twelve
30-day
months) at the Adjusted Treasury Rate (as defined in the Form of Note attached hereto as Exhibit 4.3), plus 20 basis points;
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in each case,
plus accrued and unpaid interest on the Notes to, but excluding, the redemption date.
If we experience a “Change of Control
Repurchase Event” (as defined in the Form of Note), we will be required, unless we have exercised our right to redeem the Notes (as described above), to offer to repurchase the Notes at a purchase price equal to 101% of the principal amount,
plus accrued and unpaid interest to, but excluding, the date of repurchase.
The Company expects net proceeds (before expenses) of
$493,455,000. We intend to use the net proceeds from the sale of the Notes for general corporate purposes, which will include the repayment or refinancing of existing indebtedness, including repayment of our commercial paper indebtedness incurred
for general corporate purposes and may include $150 million aggregate principal amount of 4.40% Notes due July 1, 2018 at maturity. Before we use the net proceeds for these purposes, we may invest them in short term investments.
The Indenture includes covenants that limit the ability of the Company and its majority owned subsidiaries to, among other things: incur
secured debt in excess of 15% of the Company’s consolidated assets, enter into sale and lease-back transactions and consolidate, merge or transfer substantially all of the Company’s assets to another entity. The covenants are subject to a
number of important exceptions and qualifications set forth in the Indenture.
The Underwriters and/or their affiliates have provided and
in the future may provide investment banking, commercial banking, corporate trust and/or advisory services to the Company and its affiliates from time to time for which they have received and in the future may receive customary fees and expenses and
may have entered into and in the future may enter into other transactions with the Company. U.S. Bank National Association, the successor Trustee under the Indenture, is an affiliate of U.S. Bancorp Investments, Inc., an underwriter.
The foregoing is only a summary of certain terms and conditions of the Indenture and the Form of
Note and is qualified in its entirety by reference to the Indenture and the Company Officer’s Certificate pursuant to Section 3.1 of the Indenture with Form of Note, which are incorporated herein by reference as Exhibits 4.1 and 4.3,
respectively. This Current Report on Form
8-K
shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or foreign country in
which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or foreign country. This Current Report is also being filed for the purpose of filing exhibits to the
Registration Statement (SEC
No. 333-203064)
relating to the offering of the Notes, and Exhibits 4.3 and 5.1 are hereby incorporated into the Registration Statement by reference.