Summary
Amphenol Corporation (APH) announced on February 20, 2020, the successful issuance and sale of $400 million in aggregate principal amount of 2.050% Senior Notes due 2025. The primary purpose of this offering was to refinance existing debt, specifically to repay the company's outstanding 2.200% Senior Notes due in 2020. This strategic move allows Amphenol to lower its interest expense by securing a lower coupon rate on its new debt. The net proceeds from the offering, approximately $395.7 million after accounting for underwriting discounts and expenses, will be used in conjunction with existing cash reserves to manage the upcoming debt maturity. The new notes are unsecured, unsubordinated, and rank equally with other senior unsecured indebtedness of the company. The interest rate of 2.050% represents a favorable cost of borrowing, and the maturity in 2025 provides a medium-term financing structure.
Key Highlights
- 1Issued $400 million of 2.050% Senior Notes due 2025.
- 2Net proceeds of approximately $395.7 million received from the offering.
- 3Primary use of proceeds is to repay outstanding 2.200% Senior Notes due 2020.
- 4The new notes bear a lower interest rate (2.050%) compared to the maturing debt (2.200%).
- 5The notes are unsecured, unsubordinated, and rank equally with other senior unsecured indebtedness.
- 6The offering was conducted under Amphenol's existing shelf registration statement.
- 7Maturity date for the new notes is March 1, 2025.