Summary
Amphenol Corporation (APH) filed an 8-K on April 5, 2017, to report the issuance and sale of $750 million in aggregate principal amount of senior notes. This offering comprised $400 million of 2.200% Senior Notes due 2020 and $350 million of 3.200% Senior Notes due 2024. The company received net proceeds of approximately $744.2 million from this offering. The primary purpose of this debt issuance is to refinance existing debt and support general corporate purposes. Specifically, Amphenol intends to use the net proceeds to repay its outstanding $375 million 1.550% Senior Notes due September 15, 2017, and to repay amounts outstanding under its commercial paper program prior to that maturity date. Any remaining proceeds will be used for general corporate activities. This strategic move aims to optimize the company's capital structure and manage its debt maturity profile.
Key Highlights
- 1Amphenol Corporation issued $400 million of 2.200% Senior Notes due 2020 and $350 million of 3.200% Senior Notes due 2024.
- 2The aggregate principal amount of the offering was $750 million.
- 3Net proceeds from the offering were approximately $744.2 million after deducting underwriting discounts and expenses.
- 4The company plans to use the net proceeds to repay outstanding 1.550% Senior Notes due September 15, 2017 ($375 million).
- 5Remaining proceeds will be used for general corporate purposes and to repay outstanding commercial paper.
- 6The Notes are unsecured and rank equally with other unsecured senior indebtedness.
- 7The offering was conducted under Amphenol's existing shelf registration statement.