Summary
Amphenol Corporation filed an 8-K report on September 12, 2014, detailing a significant debt offering. The company successfully issued and sold $750 million in aggregate principal amount of senior notes, split between $375 million of 1.550% Senior Notes due 2017 and $375 million of 3.125% Senior Notes due 2021. This offering was conducted as an underwritten public offering through J.P. Morgan Securities LLC, Mitsubishi UFJ Securities (USA), Inc., and TD Securities (USA) LLC. The net proceeds from this offering, approximately $744.8 million after expenses, are earmarked for strategic financial management. Primarily, the funds will be used to repay Amphenol's outstanding $600 million 4.75% Senior Notes due November 15, 2014, and for general corporate purposes. Any remaining proceeds prior to the November 15, 2014, maturity will be used to pay down amounts under the company's credit facilities. This move indicates proactive management of the company's debt structure and a focus on reducing near-term maturities with higher interest rates.
Key Highlights
- 1Amphenol Corporation raised $750 million through the issuance of senior notes.
- 2The offering included $375 million of 1.550% Senior Notes due 2017 and $375 million of 3.125% Senior Notes due 2021.
- 3Net proceeds of approximately $744.8 million were generated after accounting for underwriting discounts and offering expenses.
- 4The primary use of proceeds is to repay the outstanding $600 million 4.75% Senior Notes due November 15, 2014.
- 5Remaining proceeds will be used for general corporate purposes and to pay down credit facilities.
- 6The new notes are unsecured and rank equally with other unsecured senior indebtedness of Amphenol.
- 7The offering was underwritten by J.P. Morgan Securities LLC, Mitsubishi UFJ Securities (USA), Inc., and TD Securities (USA) LLC.