8-KMaterial AgreementsExhibits & Filings

TE Connectivity plc 8-K Report, Material Agreement (Jun 23, 2014)

Filed June 23, 2014For Securities:TEL

Summary

TE Connectivity Ltd. (TEL) filed an 8-K on June 23, 2014, reporting on the entry into material definitive agreements related to new financing facilities. Specifically, the company, through its subsidiary TEGSA, secured a commitment for a $1 billion senior unsecured 364-day bridge loan facility and a commitment for a $1 billion senior unsecured 364-day revolving credit facility, with Citigroup Global Markets Inc. acting as the committed lender and arranger for portions of these facilities. These new credit facilities are contingent upon the negotiation of definitive documentation and the successful consummation of TE Connectivity's acquisition of Measurement Specialties, Inc. The bridge loan facility's commitment will be reduced by other debt incurred by the company or its subsidiaries. Investors should note that these facilities are intended to provide financial flexibility, potentially for the upcoming acquisition, and their activation is subject to specific closing conditions. The report also details that these commitments are preliminary and subject to final agreements.

Key Highlights

  • 1TE Connectivity Ltd. (TEL) entered into commitment letters for new debt financing facilities.
  • 2A $1 billion senior unsecured 364-day bridge loan facility was committed by Citigroup Global Markets Inc.
  • 3A $1 billion senior unsecured 364-day revolving credit facility is being arranged by Citigroup Global Markets Inc.
  • 4The activation of these facilities is contingent on the completion of the Measurement Specialties, Inc. acquisition.
  • 5Definitive documentation for both facilities needs to be negotiated.
  • 6The bridge loan commitment may be reduced by other debt incurred by TE Connectivity or its subsidiaries.
  • 7The filings indicate a proactive approach to securing financing for strategic initiatives.

Frequently Asked Questions

While not explicitly stated as the sole purpose, the filing notes that the commitments are subject to the consummation of the acquisition of Measurement Specialties, Inc. This suggests the facilities are intended to provide financial flexibility, potentially to fund this acquisition or related activities.

TE Connectivity has secured commitments for a total of $2 billion in new debt financing, comprising a $1 billion bridge loan facility and a $1 billion revolving credit facility, both with a 364-day term.

No, the availability of these facilities is subject to several conditions, including the successful negotiation of definitive loan documentation and the closing of the Measurement Specialties, Inc. acquisition. The bridge loan commitment is also subject to reduction based on other debt incurred by the company.

Citigroup Global Markets Inc. has committed to provide the initial funding for both the bridge loan facility and a portion of the revolving credit facility, and is also arranging for additional lenders to participate in the revolving credit facility.