TE Connectivity amends, restates revolver for $1.5 billion due 2023

By Wendy Van Sickle

Columbus, Ohio, Nov. 14 – TE Connectivity Ltd. entered an amendment and restated five-year $1.5 billion revolving credit facility on Thursday with subsidiary Tyco Electronics Group SA as borrower, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement matures on Nov. 14, 2023, extended from Dec. 9, 2020 under the previous agreement.

The amended and restated revolver also adds a $500 million uncommitted incremental facility and allows up to $750 million to be borrowed in euros, pounds sterling and other designated currencies.

Additionally, the basket for permitted securitization transactions was increased to $750 million from $250 million; the borrower is now permitted to increase the ratio of consolidated debt to consolidated EBITDA to 4.25 times for some quarters during which material acquisitions are designated; and the minimum threshold for some material debt cross-defaults was increased.

Borrowings bear interest at Libor plus a margin ranging from 57.5 basis points to 100 bps, and the facility fee ranges from 5 bps to 12.5 bps, depending on the borrower’s index debt rating.

The credit agreement amends and restates the credit agreement dated June 24, 2011.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Goldman Sachs Bank USA are the joint bookrunners and lead arrangers.

Bank of America, NA is the administrative agent.

Deutsche Bank and JPMorgan Chase Bank, NA are the co-syndication agents. BNP, Citibank, NA and Goldman are the co-documentation agents.

Proceeds may be used for working capital, capital expenditures and general corporate purposes.

Based in Schaffhausen, Switzerland, TE Connectivity designs and manufactures electronic connection products for industries, including automotive, energy and industrial, broadband communications, consumer devices, health care and aerospace and defense.

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