By William Gullotti
Buffalo, N.Y., Jan. 30 – Tyco Electronics Group SA priced $500 million of 4.5% three-year senior notes (A-/A-) at 99.811 to yield 4.568%, or Treasuries plus 60 basis points, on Monday, according to a 424B2 and an FWP filed with the Securities and Exchange Commission.
The notes are fully and unconditionally guaranteed by parent company TE Connectivity Ltd., a Schaffhausen, Switzerland-based maker of connectivity and sensor solutions for use in autos, planes, power grids, appliances, electronics and other products.
The notes may be called in whole, but not in part, at par plus interest for taxation reasons. The issuer may also elect to redeem the notes early at any time, in whole or in part, at the greater of the make-whole redemption at Treasuries plus 10 bps and par.
Noteholders will also be able to exercise put rights at 101 if a change of control occurs.
BofA Securities, Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the joint bookrunning managers for the offering.
Proceeds will be used for general corporate purposes, which may include the repayment of outstanding debt.
Tyco Electronics is a Luxembourg-based company.
| Issuer: | Tyco Electronics Group SA
|
| Guarantor: | TE Connectivity Ltd.
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| Amount: | $500 million
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| Issue: | Senior notes
|
| Maturity: | Feb. 13, 2026
|
| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC
|
| Co-managers: | Academy Securities, Inc., Barclays, Credit Suisse Securities (USA) LLC, ICBC Standard Bank plc, Loop Capital Markets LLC, Scotia Capital (USA) Inc. and SMBC Nikko Securities America, Inc.
|
| Trustee: | Deutsche Bank Trust Co. Americas
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| Counsel to issuer: | Weil, Gotshal & Manges LLP
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| Counsel to underwriters: | Sullivan & Cromwell LLP
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| Coupon: | 4.5%
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| Price: | 99.811
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| Yield: | 4.568%
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| Spread: | Treasuries plus 60 bps
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| Call: | Make-whole call, exercisable in whole or in part, at Treasuries plus 10 bps; at any time, in whole but not in part, at par for taxation reasons
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| Change of control: | At 101 plus interest
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| Trade date: | Jan. 30
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| Settlement date: | Feb. 13
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| Ratings: | S&P: A-
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| Fitch: A-
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| Distribution: | SEC registered
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| Cusip: | 902133AZ0
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