NEW YORK (Bloomberg) — Bermuda-based Ingersoll-Rand Co., the maker of Thermo King and Hussmann refrigeration equipment, set the size of its debt offering at $1.6 billion and added floating-rate notes to the sale, according to a person familiar with the transaction.

The sale will include $600 million of five-year notes yielding 287.5 basis points more than US Treasuries of similar maturity; $750 million of 10-year debt at a spread of 300 basis points; and $250 million in two-year notes that will pay 150 basis points more than the three-month London interbank offered rate, said the person, who declined to be identified because terms aren't set.

Libor, a borrowing benchmark, is currently set at 2.8 percent. A basis point is 0.01 percentage point.

Proceeds will be used to repay existing debt, Ingersoll-Rand said yesterday in a filing with the US Securities and Exchange Commission.