Aptiv talks $1 billion mandatory convertible preferreds to yield 5.25%-5.75%, up 17.5%-22.5%

By Abigail W. Adams

Portland, Me., June 9 – Aptiv plc plans to price $1 billion, or 10 million shares, of three-year par-of-$100 series A mandatory convertible preferred stock after the market close on Tuesday with price talk for a dividend of 5.25% to 5.75% and an initial conversion premium of 17.5% to 22.5%, according to a market source.

Goldman Sachs & Co. LLC and Citigroup Global Markets Inc. are joint lead bookrunners for the registered offering, which carries a greenshoe of $150 million, or 15 million shares.

Barclays, BofA Securities Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are also bookrunning managers.

The company is also planning a concurrent $1 billion offering of ordinary shares, which carries a greenshoe of $150 million.

Net proceeds from the mandatory convertible and common share offerings are each expected to be $969 million, or $1.115 billion if the greenshoes are exercised in full.

Proceeds will be used for general corporate purposes.

Aptiv is a Dublin, Ireland-based technology and mobility company.

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