Summary
Amphenol Corporation (APH) announced a significant financing event through its wholly-owned subsidiary, Amphenol Technologies Holding GmbH. On May 4, 2020, the subsidiary issued €500,000,000 in aggregate principal amount of 0.750% Senior Notes due 2026. These notes were sold to non-U.S. persons outside the United States under Regulation S, generating net proceeds of approximately €493.4 million after discounts and expenses. The primary purpose of this debt issuance is to repay outstanding amounts under Amphenol's revolving credit facility, indicating a strategic move to manage its debt structure and potentially lower borrowing costs. The notes are guaranteed by Amphenol Corporation on a senior unsecured basis and rank equally with other senior unsecured and unsubordinated indebtedness of both the subsidiary and the parent company. The company has the option to redeem the notes starting three months prior to maturity, with specific redemption terms including a make-whole premium before that period.
Key Highlights
- 1Amphenol subsidiary issued €500 million in 0.750% Senior Notes due 2026.
- 2Net proceeds of approximately €493.4 million will be used to repay revolving credit facility debt.
- 3The notes are guaranteed by Amphenol Corporation on a senior unsecured basis.
- 4The offering was conducted under Regulation S, targeting non-U.S. persons.
- 5The notes bear a low annual interest rate of 0.750%.
- 6Amphenol has the option to redeem the notes prior to maturity, with a make-whole premium applicable before February 4, 2026.
- 7This transaction is a material definitive agreement entered into by a subsidiary, impacting the company's financial obligations.