Summary
Amphenol Corporation (APH) announced on September 14, 2021, the successful issuance and sale of $750 million aggregate principal amount of 2.200% Senior Notes due 2031. The company received net proceeds of approximately $740.7 million from this offering, which were utilized to repay borrowings under its U.S. commercial paper program. This issuance represents a strategic move by Amphenol to refinance its short-term debt with longer-term, lower-cost financing. The senior notes are unsecured and rank equally with other unsecured senior indebtedness. The notes mature in 2031 and carry a fixed interest rate of 2.200%, payable semi-annually. Investors should note the early redemption options available to the company prior to maturity.
Key Highlights
- 1Issuance of $750 million in 2.200% Senior Notes due 2031.
- 2Net proceeds of approximately $740.7 million received from the offering.
- 3Proceeds are designated for repaying borrowings under the company's U.S. commercial paper program.
- 4Senior notes are unsecured, unsubordinated, and rank equally with other senior indebtedness.
- 5Maturity date for the notes is September 15, 2031.
- 6Company has the option to redeem the notes prior to maturity under specific conditions (make-whole premium or at par after a certain date).
Frequently Asked Questions
Amphenol Corporation issued these senior notes to repay outstanding borrowings under its U.S. commercial paper program, effectively refinancing short-term debt with longer-term obligations.
The senior notes carry a fixed interest rate of 2.200% per year and mature on September 15, 2031. Interest payments are made semi-annually.
No, the notes are unsecured and unsubordinated, meaning they do not have specific collateral backing them and rank equally with other unsecured senior indebtedness of the company.
Yes, Amphenol has the option to redeem the notes prior to maturity. Before three months prior to the maturity date, redemption can occur at a price including a 'make-whole' premium. On or after three months prior to maturity, the company can redeem the notes at 100% of the principal amount.