8-KOther EventsExhibits & Filings

TE Connectivity plc 8-K Report, Corporate Update (Sep 24, 2007)

Filed September 24, 2007For Securities:TEL

Summary

Tyco Electronics Ltd. (now TE Connectivity plc), through its subsidiary TEGSA, announced on September 21, 2007, the pricing of a substantial offering of $2.05 billion in fixed-rate senior notes. This debt issuance is structured into three tranches with varying maturities (2012, 2017, and 2037) and coupon rates, reflecting different terms in the debt market. The primary purpose of this offering is to refinance a significant portion of the company's outstanding borrowings under its unsecured bridge loan facility, which stood at $2.7 billion as of the announcement date. This move suggests a strategic effort by Tyco Electronics to strengthen its balance sheet and improve its debt structure by replacing more flexible, potentially shorter-term credit lines with longer-term, fixed-rate debt. Investors should note that these notes are senior unsecured obligations of TEGSA, fully guaranteed by the parent company, Tyco Electronics Ltd., and are being offered to qualified institutional buyers and non-U.S. persons. The settlement for this offering was scheduled for September 25, 2007.

Key Highlights

  • 1Tyco Electronics Ltd. (now TE Connectivity plc) priced a $2.05 billion aggregate principal amount of fixed-rate senior notes.
  • 2The notes are issued by its wholly-owned subsidiary, TEGSA.
  • 3The offering consists of three tranches: $800 million due 2012 (6.00% coupon), $750 million due 2017 (6.55% coupon), and $500 million due 2037 (7.125% coupon).
  • 4Proceeds are intended to repay a portion of the company's $2.7 billion outstanding bridge loan facility.
  • 5The notes are senior unsecured obligations of TEGSA and are fully guaranteed by Tyco Electronics Ltd.
  • 6The offering was made to qualified institutional buyers and non-U.S. persons under specific regulations (Rule 144A and Regulation S).
  • 7The transaction was expected to settle on September 25, 2007.

Frequently Asked Questions

The main purpose of the offering is to refinance a significant portion of Tyco Electronics' existing borrowings under its unsecured bridge loan facility, which had $2.7 billion drawn as of September 21, 2007. This aims to extend the company's debt maturity profile and secure fixed-rate financing.

The notes are being issued by Tyco Electronics Group S.A. (TEGSA), a wholly-owned subsidiary. They are senior unsecured obligations of TEGSA and are fully and unconditionally guaranteed on a senior unsecured basis by the parent company, Tyco Electronics Ltd.

The offering comprises three tranches: $800 million in Senior Notes due 2012 at a 6.00% annual interest rate, $750 million in Senior Notes due 2017 at a 6.55% annual interest rate, and $500 million in Senior Notes due 2037 at a 7.125% annual interest rate. All interest is payable semi-annually.

No, the notes are not being registered under the Securities Act of 1933 or the securities laws of any other jurisdiction. They are offered to qualified institutional buyers (pursuant to Rule 144A) and non-U.S. persons (in reliance on Regulation S), and may not be offered or sold in the U.S. without registration or an applicable exemption.