TE Connectivity plc (NYSE: TEL) has announced the pricing of a significant debt offering to solidify its financial strategy and support recent corporate activities. On April 29, 2025, the company priced €500 million in 2.500% senior notes due in 2028 through its subsidiary Tyco Electronics Group S.A. (TEGSA). This debt issuance was priced at 99.610% of principal, reflecting a competitive interest rate of 2.500% annually, payable once per year.
This debt offering is part of a broader financial plan that utilizes net proceeds, alongside any funds raised from a concurrent USD notes offering, to finance general corporate purposes. Key among these aims is the repayment of debt incurred from TE Connectivity’s recent acquisition of the Richards Manufacturing business.
TE Connectivity has over 85,000 employees globally and operates in approximately 130 countries. It is a global industrial technology leader focusing on connectivity and sensor solutions that support critical industries such as next-generation transportation, energy networks, automated factories, data centers, and medical technology. The company emphasizes that “EVERY CONNECTION COUNTS,” underscoring its commitment to advancing safe, sustainable, and connected futures.
Strategically, the €500 million senior notes due 2028 will strengthen TE Connectivity’s capital structure by refinancing acquisition-related debt at a moderate interest cost. The offering is managed by a syndicate of premier global investment banks including Barclays Bank PLC, BNP Paribas, BofA Securities Europe SA, Citigroup Global Markets Limited, Deutsche Bank AG, Goldman Sachs & Co. LLC, J.P. Morgan Securities plc, and Scotiabank (Ireland).
The anticipated closing date for the offering is May 6, 2025. Investors and interested parties can access the full prospectus and registration statement filings on the SEC website (https://sec.gov/Archives/edgar/data/1385157/000110465925045083/tm2514045d1_ex99-1.htm).
Financial Context and Projections: While specific 2024 financial ratios like long-term debt to capitalization or debt-to-equity for TE Connectivity were unavailable for direct analysis, the company’s strategic use of fixed-rate senior notes at a 2.500% coupon points to an intention to optimize financing costs amid an evolving interest rate environment. Refinancing acquisition debt enhances liquidity and flexibility on the balance sheet, potentially facilitating further strategic investments or acquisitions.
This debt issue also reflects TE Connectivity’s broader objective of managing corporate debt prudently while supporting growth through targeted acquisitions such as Richards Manufacturing, which aligns with its mission to innovate across critical tech sectors.
In previous earnings calls, TE Connectivity has emphasized the importance of strategic acquisitions like Richards Manufacturing to advance its product portfolio and enhance innovation capabilities. This debt issuance follows those strategic directions, aligning financial operations with business growth initiatives.
Summary: - Who: TE Connectivity plc, through subsidiaries TEGSA and TE Connectivity Switzerland Ltd. - What: Pricing of €500 million 2.500% senior notes due 2028 - When: Announced April 29, 2025; expected to close May 6, 2025 - Where: Secondary public debt market, internationally, with global investment bank syndicate - Why: To support general corporate purposes and repay acquisition-related debt
TE Connectivity continues to bolster its financial foundation to drive innovation, operational resilience, and sustainable growth. The success of this note offering will be a critical enabler for the company as it fortifies its market leadership in connectivity and sensor technology solutions worldwide.
For full details, view the official SEC filing here: https://sec.gov/Archives/edgar/data/1385157/000110465925045083/tm2514045d1_ex99-1.htm