Eaton Capital announces potential market stabilization measures

Published 06/05/2025, 09:52
© Reuters.

LONDON - J.P. Morgan Securities Plc has announced that as the Stabilisation Coordinator, it may engage in measures to stabilize the market price of Eaton (NYSE:ETN) Capital Unlimited Company’s newly offered securities. The securities in question are EUR 500 million worth of 30-year fixed senior unsecured notes, which are SEC-registered and listed on the New York Stock Exchange.

The stabilization period, which is governed by relevant EU regulation, began today and is expected to last no longer than one month, concluding by June 6, 2025. During this time, the Stabilisation Managers, which include J.P. Morgan Securities Plc, Deutsche Bank (ETR:DBKGn), and Goldman Sachs, have the ability to over-allot securities by up to 5% of the aggregate nominal amount.

The purpose of this potential stabilization is to support the market price of the securities after their issuance. This could involve transactions by the Stabilisation Managers to maintain the securities’ price at a level higher than that which might otherwise prevail in the market. However, there is no guarantee that stabilization activities will take place, and if they do begin, they can be discontinued at any time within the stipulated period.

It is important to note that the announcement of these measures is strictly for informational purposes and does not constitute an offer to underwrite, subscribe for, or acquire any securities. The offer is directed at individuals outside the United Kingdom (TADAWUL:4280) or those within it who have professional investment experience or are high net worth entities.

Additionally, the securities have not been and will not be registered under the United States Securities Act of 1933, thus they may not be offered or sold in the United States without registration or an applicable exemption from such registration requirements. The public offer of these securities will not be made in the United States.

This information, based on a press release statement, indicates that Eaton Capital and the Stabilisation Managers are taking customary steps to ensure a stable market entry for the new securities, a common practice in the issuance of large financial instruments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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