Summary
TE Connectivity plc (TEL) announced on November 14, 2018, that it has entered into an Amended and Restated Five-Year Senior Credit Agreement. This refiling of their existing credit facility with Bank of America, N.A. as administrative agent extends the maturity date and enhances its flexibility. The primary purpose of this amendment is to ensure continued access to capital and to better align the company's financing structure with its strategic objectives. Key modifications include an extended maturity to November 2023, increased borrowing capacity in various currencies, and the addition of an uncommitted incremental facility, providing greater financial agility. The company has also increased its permissible leverage ratio for acquisitions and adjusted thresholds for debt cross-defaults. These changes demonstrate TEL's proactive approach to managing its financial resources and supporting future growth opportunities.
Key Highlights
- 1Entered into an Amended and Restated Five-Year Senior Credit Agreement on November 14, 2018.
- 2Extended the maturity date of the credit facility from December 9, 2020, to November 14, 2023.
- 3Increased the aggregate revolving credit commitment to $1,500,000,000.
- 4Added an uncommitted incremental facility of up to $500,000,000 for additional borrowing capacity.
- 5Increased the basket for Permitted Securitization Transactions from $250,000,000 to $750,000,000.
- 6Allowed for a higher Consolidated Debt to Consolidated EBITDA ratio (4.25 to 1.00) during periods of material acquisitions.
- 7Updated provisions related to LIBOR replacement, anti-money laundering, and sanctions regulations.