By Lisa Kerner
Charlotte, N.C., May 11 – Wabco Holdings Inc. agreed to issue senior notes totaling $500 million, according to an 8-K filing with the Securities and Exchange Commission.
The notes will be issued as follows:
• $150 million of 2.83% notes, series A, due 2022;
• $200 million of 3.08% notes, series B, due 2025; and
• $150 million of 3.18% notes, series C, due 2027.
Wabco said the note purchase agreement enables the company to secure long-term fixed-rate funding to pay down existing short-term variable-rate obligations.
Wabco may prepay all or any part of the notes in an amount equal to 100% of the principal amount of the notes so prepaid plus a make-whole amount and any accrued interest. There is a change-of-control put at par plus a make-whole amount.
Under the note purchase agreement, Wabco must maintain a ratio of consolidated net debt to consolidated EBITDA of not more than three times at the end of each period of 12 consecutive months. The company must also maintain a ratio of consolidated EBITDA to consolidated net interest expense of not more than three times at the end of each fiscal quarter.
Wabco is based in Piscataway, N.J. It makes electronic, mechanical and mechatronic products for automobile manufacturers.
| Issuer: | Wabco Holdings Inc.
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Pricing date: | May 8
|
| Settlement: | June 25
|
| Distribution: | Private placement
|
|
|
| Series A notes
|
| Amount: | $150 million
|
| Coupon: | 2.83%
|
| Maturity: | June 25, 2022
|
|
|
| Series B notes
|
| Amount: | $200 million
|
| Coupon: | 3.08%
|
| Maturity: | June 25, 2025
|
|
|
| Series C notes
|
| Amount: | $150 million
|
| Coupon: | 3.18%
|
| Maturity: | June 25, 2027
|
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