Parker-Hannifin Closes $2.4B and ā¬2.025B Senior Notes Offerings to Refinance Acquisition Debt
Parker-Hannifin Corp
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Filing Summary
š¢ Parker-Hannifin Corp ($PH) has closed registered public offerings of $2.4 Billion and ā¬2.025 Billion aggregate principal amount of senior notes across seven tranches.
ā¢ Use of Proceeds: Repay borrowings under the 364-Day Term Loan Agreement incurred for the acquisition of Filtration Group Corporation, plus cash on hand. ā¢ U.S. Tranches ($2.4B total): 2028 ($525M @ 4.750%), 2029 ($500M @ 4.875%), 2031 ($750M @ 5.125%), 2033 ($625M @ 5.300%). ā¢ Euro Tranches (ā¬2.025B total): 2030 (ā¬700M @ 3.800%), 2032 (ā¬800M @ 4.040%), 2036 (ā¬525M @ 4.375%).
Comprehensive Analysis
Executive Summary
On September 14, 2026, Parker-Hannifin Corporation completed two registered senior notes offerings totaling $2.4 billion in U.S. Dollar-denominated senior notes and ā¬2.025 billion in Euro-denominated senior notes under its existing Form S-3 shelf registration statement.
Offering Structure & Tranche Details
1. U.S. Dollar Notes ($2.40 Billion Total)
- 2028 Notes: $525 million principal, 4.750% coupon, maturing September 14, 2028 (Semi-annual interest: Mar 14 / Sep 14).
- 2029 Notes: $500 million principal, 4.875% coupon, maturing 2029 (Semi-annual interest: Mar 14 / Sep 14).
- 2031 Notes: $750 million principal, 5.125% coupon, maturing 2031 (Semi-annual interest: Mar 19 / Sep 19).
- 2033 Notes: $625 million principal, 5.300% coupon, maturing 2033 (Semi-annual interest: Mar 16 / Sep 16).
2. Euro Notes (ā¬2.025 Billion Total)
- 2030 Notes: ā¬700 million principal, 3.800% coupon, maturing 2030 (Annual interest: Mar 1).
- 2032 Notes: ā¬800 million principal, 4.040% coupon, maturing 2032 (Annual interest: Mar 3).
- 2036 Notes: ā¬525 million principal, 4.375% coupon, maturing 2036 (Annual interest: Mar 5).
Use of Proceeds & Capital Structure Impact
- Primary Purpose: The net proceeds, along with cash on hand, will be used to pay down borrowings under the company's 364-Day Term Loan Agreement (dated December 10, 2025), which was established to fund the acquisition of Filtration Group Corporation.
- Ranking: Senior unsecured obligations ranking pari passu with all other existing and future senior unsecured debt of the company.
- Covenants & Redemption: Includes standard change-of-control put options at 101% upon a Change of Control Triggering Event (Change of Control coupled with a downgrade below Investment Grade), make-whole call provisions prior to par call dates, and tax redemption features on the Euro Notes.
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