Summary
TE Connectivity plc (TEL) has filed an 8-K report detailing significant financing activities. The company is terminating its $1.5 billion 364-day senior credit facility, which was established to finance the recent acquisition of the Richards Manufacturing business. This termination, effective May 16, 2025, is a result of the successful issuance of new senior notes and previously announced euro-denominated notes, indicating the company has secured necessary funding through capital markets. Furthermore, TE Connectivity has issued $900 million in aggregate principal amount of U.S. dollar-denominated senior notes, split between $450 million of 4.500% Senior Notes due 2031 and $450 million of 5.000% Senior Notes due 2035. The net proceeds of approximately $887.5 million from these notes, combined with the euro notes, will be used for general corporate purposes, including repaying acquisition-related debt. Concurrently, the company plans to reduce its commercial paper program capacity from $2.75 billion to $1.25 billion.
Key Highlights
- 1Termination of $1.5 billion 364-Day Senior Credit Facility effective May 16, 2025.
- 2Successful issuance of $900 million in U.S. dollar-denominated Senior Notes: $450 million 4.500% due 2031 and $450 million 5.000% due 2035.
- 3Net proceeds from the new notes (approx. $887.5 million) will be used for general corporate purposes, including repayment of acquisition debt.
- 4The company is reducing its commercial paper program capacity from $2.75 billion to $1.25 billion.
- 5The new notes are unsecured senior obligations of TEGSA, guaranteed by TE Connectivity and TE Connectivity Switzerland Ltd.
- 6No borrowings were outstanding under the 364-Day Facility at the time of this report.
- 7This financing strategy demonstrates a shift towards longer-term debt instruments and reduced reliance on short-term credit facilities.