Summary
Amphenol Corporation filed an 8-K on June 13, 2003, reporting on significant financial restructuring activities completed on May 6, 2003. The company successfully refinanced its senior credit facilities and redeemed all outstanding Senior Subordinated Notes. This move involved establishing a new $750 million credit facility, comprised of a revolving credit facility and two term loans with staggered maturities extending to 2010. The primary purpose of this refinancing was to repay approximately $440 million under the previous senior credit agreement and to redeem $144 million in Senior Subordinated Notes. The remaining proceeds are allocated for working capital needs. While this strategic financial maneuver strengthens the company's capital structure, it also resulted in one-time refinancing expenses of approximately $10.5 million, or $0.16 per share, which included call premiums and the write-off of deferred debt issuance costs.
Key Highlights
- 1Amphenol Corp refinanced its senior credit facilities and redeemed all outstanding Senior Subordinated Notes on May 6, 2003.
- 2A new $750 million credit facility was established, featuring a $125 million five-year revolving credit facility and two term loans.
- 3The new facility includes a $125 million Tranche A loan (five-year amortization) and a $500 million Tranche B loan (maturing in 2010).
- 4Proceeds from the refinancing were used to repay $440 million in existing senior debt and $144 million in Senior Subordinated Notes.
- 5The company incurred approximately $10.5 million ($0.16 per share) in one-time expenses related to the refinancing.
- 6These expenses included call premiums on the notes and write-offs of deferred debt issuance costs.
- 7The Credit Agreement, dated May 6, 2003, is filed as an exhibit and incorporated by reference.