#Senior Notes #Ireland #Galway #TE Connectivity #Tyco Electronics

TE Connectivity's €750 Million Senior Notes Offering

On January 28, 2025, TE Connectivity plc, a prominent player in industrial technology, announced a significant offering of €750 million in senior notes with an interest rate of 3.250%, set to mature in 2033. The offering, executed via its wholly-owned subsidiary, Tyco Electronics Group S.A. (TEGSA), marks a strategic move to strengthen the company's financial framework and support corporate operations.

Details of the Offering

This senior notes offering arises from a registration statement initially filed on October 1, 2024. The company has opted to issue the notes at a price of 99.136%, providing an attractive option for investors seeking stable returns. Each note will accrue interest at a fixed rate of 3.250% per year, benefiting from an annual payment structure, thereby ensuring a predictable revenue stream for TE Connectivity.

Usage of Proceeds

TE Connectivity plans to utilize the net proceeds from this offering for a variety of corporate purposes. This may encompass the repayment of existing debt, which is a critical aspect of managing corporate finance responsibly. Effective debt management not only supports liquidity but also plays a crucial role in maintaining financial stability and attractiveness to investors.

Management Team Involvement

Leading this endeavor are renowned financial institutions, including BofA Securities Europe SA, Citigroup Global Markets Limited, and J.P. Morgan Securities plc, functioning as joint book-running managers for the offering. Their involvement underscores the significance and anticipated impact of this financing strategy.

Market Context and Future Outlook

As TE Connectivity pursues this offering, the context of global economic shifts cannot be overlooked. Despite potential risks, including currency fluctuations and geopolitical tensions, the company is well-positioned to leverage this influx of capital towards advancing its operational objectives. Moreover, TE Connectivity's commitment to a connected and sustainable future aligns with its mission to deliver cutting-edge technology solutions across various sectors.

The anticipated closing date for the notes offering is set for January 31, 2025, and investors can view the offering’s base prospectus on the Securities and Exchange Commission's website or directly from the participating financial institutions.

Commitment to Transparency

TE Connectivity's announcement includes a vision for transparency, ensuring potential investors are well-informed about the nature and implications of the offerings. The company emphasizes that this announcement does not constitute an offer for the sale of securities in any jurisdiction where such offer would be unlawful, adhering strictly to regulatory requirements.

Conclusion

In summation, TE Connectivity's €750 million senior notes offering signifies a strategic financial decision aimed at enhancing corporate viability and fulfilling its commitment to providing innovative connectivity solutions. With a focus on sustainable growth, TE Connectivity continues to pave the way for advancements in technology critical for tomorrow’s infrastructure. This offering will help fortify the company's operational capabilities as it navigates the complexities of the modern business landscape.