Summary
TE Connectivity Ltd. (TEL) filed an 8-K on December 4, 2011, reporting on material definitive agreements related to securing financing. Specifically, on November 29, 2011, the company and its subsidiary TEGSA entered into commitment letters with JPMorgan Chase Bank, N.A. for two significant credit facilities. The first is a senior unsecured 364-day bridge loan facility totaling up to $700 million, intended to support an anticipated acquisition. The second facility is a senior unsecured 364-day revolving credit facility of up to $700 million, with JPMCB committed to $210 million and J.P. Morgan Securities LLC arranging for an additional $490 million from a syndicate of lenders. Both facilities are subject to customary conditions, including definitive documentation and, for the bridge loan, the successful consummation of the Deutsch Group SAS acquisition. These agreements indicate TE Connectivity's proactive approach to financing its strategic growth initiatives.
Key Highlights
- 1TE Connectivity Ltd. entered into commitment letters for two significant credit facilities on November 29, 2011.
- 2A $700 million senior unsecured 364-day bridge loan facility was committed by JPMorgan Chase Bank, N.A.
- 3This bridge loan is intended to finance the acquisition of Deutsch Group SAS.
- 4A separate $700 million senior unsecured 364-day revolving credit facility was also agreed upon.
- 5J.P. Morgan Securities LLC is arranging for a syndicate of lenders to provide a substantial portion of the revolving credit facility.
- 6Both facilities are subject to conditions, including negotiation of definitive agreements and, for the bridge loan, the closing of the Deutsch Group SAS acquisition.
- 7The company is proactively securing financing for strategic growth and potential acquisitions.