What is the purpose of increasing the commercial paper program?

The increase in the commercial paper program is intended to provide Amphenol Corporation with greater financial flexibility for general corporate purposes. This could include funding working capital needs, short-term investments, or other operational requirements.

How does this relate to Amphenol's credit agreement?

The $500.0 million increase in the commercial paper program brings its total capacity to $2.0 billion, which matches the total available borrowing capacity under the company's Credit Agreement dated March 1, 2016. This alignment ensures that the company has significant, readily available borrowing resources.

Are the commercial paper notes secured?

No, the commercial paper notes issued under this program are unsecured. They are short-term, unsecured promissory notes.

What does it mean that the commercial paper notes are not registered under the Securities Act?

It means that these notes have not undergone the formal registration process with the Securities and Exchange Commission (SEC) required for publicly offered securities. They are offered and sold under exemptions from registration, typically to sophisticated investors, and may not be publicly traded in the same way as registered securities.

APH 8-K SEC Disclosure

Summary

Amphenol Corporation (APH) announced on April 1, 2016, an increase in its commercial paper program by $500.0 million, bringing the total aggregate principal amount of commercial paper notes that can be outstanding at any time to $2.0 billion. This strategic move aligns with the company's existing $2.0 billion revolving credit facility, providing substantial financial flexibility. The company intends to use the net proceeds from these commercial paper issuances for general corporate purposes. This expansion of its short-term borrowing capacity suggests a proactive approach to managing its working capital and potentially funding growth opportunities. Investors should note that the commercial paper notes are unsecured and not registered under the Securities Act, relying on exemptions from registration.

Key Highlights

1Amphenol Corporation increased its commercial paper program by $500.0 million.
2The aggregate principal amount of commercial paper notes issuable under the program now stands at $2.0 billion.
3This program expansion is synchronized with the company's $2.0 billion credit agreement.
4The increase in borrowing capacity provides enhanced financial flexibility for the company.
5Proceeds from commercial paper issuances are designated for general corporate purposes.
6Commercial paper notes are unsecured and not registered under the Securities Act, utilizing exemptions.

AMPHENOL CORP /DE/ 8-K Report, Corporate Update (Apr 5, 2016)

Summary

Key Highlights

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