Aptiv amends and restates term loan A, revolver with JPMorgan

Chicago, June 25 – Aptiv plc and wholly owned subsidiaries Aptiv Corp. and Aptiv Global Financing Ltd. entered into a third amended and restated credit agreement on Thursday with JPMorgan Chase Bank, NA as administrative agent.

The loan was originally dated March 31, 2011 and restated last May 1, 2020.

The amended agreement refinances and replaces the existing term loan A and revolver with a new term loan for $313 million with a five-year tenor and a new five-year revolver with $2 billion of commitments.

The tranche A term loans will have an interest rate between Libor plus 87.5 bps and 162.5 bps, subject to a 0% floor. The precise rate will be based on ratings.

Revolving commitments will bear interest at Libor plus 90 bps to 150 bps. Libor shall not be less than 0%. The commitment fee on the revolver is 10 bps to 25 bps. Both the interest rate and the commitment fee are also based on ratings.

The overall cost of the loan can be reduced with existing sustainability-linked metrics and commitments.

Restrictions on dividends and other payments on equity were removed, as was the provision that increased the leverage ratio maintenance covenant to 4.5 from 3.5 until July 1.

The new agreement includes a financial maintenance covenant that will be tested quarterly and requires the company to maintain total net leverage of less than 3.5x (or 4x for four full fiscal quarters following completion of material acquisitions).

BofA Securities, Inc. Barclays, BNP Paribas Securities Corp., Citibank, NA, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are co-syndication agents.

Societe Generale, Sumitomo Mitsui Banking Corp., TD Bank, NA, Truist Bank, Unicredit Bank AG, New York Branch, U.S. Bank NA and Wells Fargo Bank, NA are co-documentation agents.

BNP Paribas Securities Corp. and J.P. Morgan Securities LLC are co-sustainability structuring agents.

Joint bookrunners and joint lead arrangers are JPMorgan Chase Bank, NA, BofA Securities, Inc., Barclays Bank plc, BNP Paribas Corp., Citibank, NA and Goldman Sachs Bank USA.

The technology and mobility company is based in Dublin, Ireland.

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