Parker-Hannifin prices note offerings totaling over $4 billion to repay term loan

Parker-Hannifin Corporation (PH) priced a multi-tranche debt offering consisting of $2.4 billion in U.S. dollar-denominated senior notes and €2.025 billion in Euro-denominated senior notes, according to a regulatory filing on Wednesday.

Key takeaways

• Parker-Hannifin priced $2.4 billion in U.S. notes across four tranches maturing between 2028 and 2033.
• The company priced €2.025 billion in Euro notes across three tranches maturing between 2030 and 2036.
• Both offerings are expected to close on or about September 14, 2026.
• Net proceeds will be used alongside cash on hand to repay borrowings under a 364-day term loan.
• The term loan was incurred to fund the acquisition of Filtration Group Corporation.

U.S. dollar notes and pricing

The U.S. dollar-denominated offering includes $525 million of 4.750% senior notes due 2028, $500 million of 4.875% senior notes due 2029, $750 million of 5.125% senior notes due 2031, and $625 million of 5.300% senior notes due 2033. Interest on the 2028 and 2029 notes will be paid semi-annually on March 14 and September 14, starting March 14, 2027. Interest on the 2031 notes will be paid on March 19 and September 19, commencing March 19, 2027. Interest on the 2033 notes will be paid on March 16 and September 16, beginning March 16, 2027. Barclays Capital Inc., Citigroup Global Markets Inc., and Morgan Stanley & Co. LLC acted as representatives for the underwriters.

Euro notes and pricing

The Euro-denominated offering comprises €700 million of 3.800% senior notes due 2030, €800 million of 4.040% senior notes due 2032, and €525 million of 4.375% senior notes due 2036. Interest on the 2030 Euro notes will be paid annually on March 1, starting March 1, 2027. Interest on the 2032 notes will be paid on March 3, beginning March 3, 2027. Interest on the 2036 notes will be paid on March 5, commencing March 5, 2027. Barclays Bank PLC, Citigroup Global Markets Limited, and Morgan Stanley & Co. International plc acted as representatives for the Euro note underwriters.

Use of proceeds and closing

The company intends to use the net proceeds from both the U.S. notes and the Euro notes, together with cash on hand, to repay borrowings under the 364-Day Term Loan Agreement dated December 10, 2025. Those borrowings were incurred with Barclays Bank PLC and various other financial institutions to fund the acquisition of Filtration Group Corporation. Both offerings are registered under the Securities Act of 1933 and are expected to close on or about September 14, 2026, subject to customary closing conditions.

Why it matters

The debt offerings total over $4 billion across multiple tranches and currencies, marking a major refinancing step tied directly to the company's acquisition financing for Filtration Group Corporation. By shifting bank term loan debt into long-term senior notes maturing between 2028 and 2036, Parker-Hannifin locks in fixed interest rates ranging from 3.800% to 5.300% across the various maturities.

By the numbers

Closing conditions and timeline

The offerings remain subject to customary closing conditions. Final prospectus supplements for both the U.S. notes and the Euro notes were filed with the Securities and Exchange Commission on September 10, 2026, following pricing on September 8 and September 9, respectively.