The
2.25
% CHF Bonds, due 2021, pay interest annually in arrears, at a
fixed annual rate of
2.25
Company has the option to redeem the bonds prior
to maturity, in whole,
at par plus accrued interest, if
85
aggregate principal amount of the bonds has been redeemed
or purchased and cancelled. The Company entered into
interest rate swaps to hedge its interest obligations on
these bonds. After considering the impact of such swaps, these
bonds effectively became floating rate Swiss franc
obligations and consequently have been shown as floating rate
debt
in the table of long‑term debt above.
The
2.875
% USD Notes, due 2022, pay interest semi‑annually in arrears
at a fixed annual rate of
2.875
The
4.375
% USD Notes, due 2042, pay interest semi‑annually in arrears
at a fixed annual rate of
4.375
Company may redeem both of these notes (which were
issued together in May 2012) prior to maturity,
in whole or in
part, at the greater of (i)
100
percent of the principal amount of the notes to be redeemed and
(ii) the sum of the present
values of remaining scheduled payments of principal and
interest (excluding interest accrued to the redemption date)
discounted to the redemption date at a rate defined
in the note terms, plus interest accrued at the redemption
date. These
notes, registered with the U.S. Securities and Exchange
Commission, were issued by ABB Finance (USA) Inc., a
100
percent owned finance subsidiary,
and were fully and unconditionally guaranteed by ABB Ltd. There
are no
significant restrictions on the ability of the parent
company to obtain funds from its subsidiaries by dividend or loan.
In
reliance on Rule 3‑10 of Regulation S‑X, the separate
financial statements of ABB Finance (USA) Inc. are not provided.
The Company has entered into interest rate swaps for an
aggregate nominal amount of $
1,050
million to partially hedge
its interest obligations on the
2.875
% USD Notes, due 2022. After considering the impact of such swaps,
$
1,050
of the outstanding principal is shown as floating rate debt
in the table of long‑term debt above.
The
0.625
% EUR Instruments, due 2023, were issued in May 2016, with
total net issuance proceeds of
EUR
697
million (equivalent to approximately $
807
million on date of issuance). These Instruments pay interest
annually in arrears at a fixed rate of
0.625
percent per annum. The Company may redeem these notes three
months prior
to maturity (Par call date), in whole or in part, at
the greater of (i)
100
percent of the principal amount of the notes to be
redeemed and (ii) the sum of the present values of remaining
scheduled payments of principal and interest (excluding
interest accrued to the redemption date) discounted to the
redemption date at a rate defined in the note terms, plus
interest accrued at the redemption date. The Company
may redeem these instruments in whole or in part, after the
Par
call date at
100
percent of the principal amount of the notes to be redeemed.
The Company entered into interest rate
swaps to hedge its interest on these bonds. After considering
the impact of such swaps, these notes effectively
became
floating rate euro obligations and consequently have
been shown as floating rate debt, in the table of long‑term debt
above.
The
0.75
% EUR Instruments, due 2024, were issued in May 2017, with
total net issuance proceeds of
EUR
745
million (equivalent to approximately $
824
million on date of issuance). These Instruments pay interest
annually in arrears at a fixed rate of
0.75
percent per annum and have the same early redemption terms
as the
0.625
% EUR Instruments above. The Company entered into interest rate swaps to
hedge its interest on these bonds.
After considering the impact of such swaps, these bonds effectively
became floating rate euro obligations and
consequently have been shown as floating rate debt
in the table of long‑term debt above.
In April 2018, the Company issued the following notes
(i) $
300
2.8
% USD Notes, due 2020,
(ii) $
450
3.375
% USD Notes, due 2023, and (iii) $
750
3.8
% USD Notes, due 2028. Each of the
respective notes pays interest semi‑annually in arrears.
The aggregate net proceeds of these bond issues, after
underwriting discount and other fees, amounted to $
1,494
million. The 2020 Notes were repaid at maturity in October
2020 and the 2023 Notes were redeemed in full in December
2020.
The Company may redeem the remaining principal
outstanding on the 2028 Notes up to
three months
prior to their maturity date, in whole or in part, at the greater
of
(i)
100
percent of the principal amount of the notes to be redeemed
and (ii) the sum of the present values of remaining
scheduled payments of principal and interest (excluding
interest accrued to the redemption date) discounted to the
redemption date at a rate defined in the Notes terms,
plus interest accrued at the redemption date. On or after January
3,
2028 (
three months
prior to their maturity date), the Company may also redeem
the 2028 Notes, in whole or in part, at
any time at a redemption price equal to
100
percent of the principal amount of the notes to be redeemed
plus unpaid
accrued interest to, but excluding, the redemption date.
These notes, registered with the U.S. Securities and Exchange
Commission, were issued by ABB Finance (USA) Inc.,
a
100
percent owned finance subsidiary,
and were fully and
unconditionally guaranteed by ABB Ltd. There are no
significant restrictions on the ability of the parent company
to
obtain funds from its subsidiaries by dividend or loan.
In reliance on Rule 3‑10 of Regulation S‑X, the separate
financial
statements of ABB Finance (USA) Inc. are not provided.