Parker-Hannifin completes $4.4 billion senior notes offering across seven tranches

Parker-Hannifin Corporation (PH) completed its previously announced registered offerings of senior notes totaling $2.4 billion and €2.025 billion in aggregate principal amount, according to a regulatory filing on Monday. The offerings closed on September 14, 2026.

Key takeaways

• Parker-Hannifin completed $2.4 billion in U.S. notes across four tranches.
• The company issued €2.025 billion in Euro notes across three tranches.
• Net proceeds will repay borrowings under a 364-day term loan for an acquisition.
• U.S. notes mature between 2028 and 2033 with coupons up to 5.300%.
• Euro notes mature between 2030 and 2036 with coupons up to 4.375%.

U.S. notes structure and coupons

The U.S. Notes Offering included four tranches totaling $2.4 billion in aggregate principal amount. The first tranche consists of $525 million of senior notes due 2028 bearing interest at 4.750% per annum, with interest payable semi-annually on March 14 and September 14, starting March 14, 2027. The second tranche includes $500 million of senior notes due 2029 bearing interest at 4.875% per annum, with semi-annual payments on the same dates.

The third tranche comprises $750 million of senior notes due 2031 carrying a 5.125% interest rate, with semi-annual payments on March 19 and September 19, beginning March 19, 2027. The fourth tranche includes $625 million of senior notes due 2033 bearing interest at 5.300% per annum, with semi-annual payments on March 16 and September 16, commencing March 16, 2027.

Euro notes structure and coupons

The Euro Notes Offering included three tranches totaling €2.025 billion in aggregate principal amount. The offering comprises €700 million of senior notes due 2030 bearing interest at 3.800% per annum, payable annually on March 1, starting March 1, 2027. It also includes €800 million of senior notes due 2032 bearing interest at 4.040% per annum, payable annually on March 3, beginning March 3, 2027.

The final tranche consists of €525 million of senior notes due 2036 with a 4.375% interest rate, payable annually on March 5, commencing March 5, 2027. The company will pay additional amounts on the Euro notes if necessary to offset any United States withholding taxes for non-U.S. holders.

Use of proceeds

The company intends to use the net proceeds from both offerings, combined with cash on hand, to repay borrowings under its 364-Day Term Loan Agreement dated December 10, 2025. Those term loan borrowings were incurred with Barclays Bank PLC and various financial institutions to fund the acquisition of Filtration Group Corporation.

Why it matters

The dual-currency debt issuance replaces short-term bank financing with long-term senior unsecured notes across seven distinct tranches. The notes rank equally with all other senior unsecured debt of the company. If Parker-Hannifin experiences certain changes of control, it must offer to repurchase the notes at 101% of their principal amount plus accrued and unpaid interest.

By the numbers

| Metric | Value | Source | |---|---|---|> | U.S. Notes Total | $2.4 billion | 8-K Filing | | Euro Notes Total | €2.025 billion | 8-K Filing | | 2028 U.S. Notes Principal | $525 million | 8-K Filing | | 2028 U.S. Notes Coupon | 4.750% | 8-K Filing | | 2029 U.S. Notes Principal | $500 million | 8-K Filing | | 2029 U.S. Notes Coupon | 4.875% | 8-K Filing | | 2031 U.S. Notes Principal | $750 million | 8-K Filing | | 2031 U.S. Notes Coupon | 5.125% | 8-K Filing | | 2033 U.S. Notes Principal | $625 million | 8-K Filing | | 2033 U.S. Notes Coupon | 5.300% | 8-K Filing |

| Metric | Value | Source | |---|---|---|> | 2030 Euro Notes Principal | €700 million | 8-K Filing | | 2030 Euro Notes Coupon | 3.800% | 8-K Filing | | 2032 Euro Notes Principal | €800 million | 8-K Filing | | 2032 Euro Notes Coupon | 4.040% | 8-K Filing | | 2036 Euro Notes Principal | €525 million | 8-K Filing | | 2036 Euro Notes Coupon | 4.375% | 8-K Filing | | Change of Control Repurchase Price | 101% of principal | 8-K Filing |

Redemption terms and closing dates

The notes were issued under an indenture dated September 5, 2023, with The Bank of New York Mellon Trust Company, N.A. acting as trustee, supplemented by officer's certificates dated September 14, 2026. The company may redeem the U.S. notes and Euro notes prior to specified dates based on redemption prices described in the prospectus supplement, and at 100% of principal plus accrued interest on or after those dates.