Illinois Tool Works plans debt sale

Illinois Tool Works Inc., the maker of Hobart food mixers and Duo-Fast nail guns, plans to sell five- and 10-year notes in a benchmark offering, according to a person familiar with the transaction.

The sale of senior fixed-rate notes may occur as soon as today, said the person, who declined to be identified because terms aren't set. A benchmark offering is typically at least $500 million.

Proceeds will be used to repay short-term debt and for general corporate purposes, the person said.

The debt may be rated A1 by Moody's Investors Service, the fifth level of investment quality, and an equivalent A+ by Standard & Poor's, the person said.

The Glenview-based company hired Bank of America Corp. and HSBC Holdings Plc to help sell the debt, the person said.