Aptiv Announces Pricing of Senior Notes Offering

Rhea-AI Summary

Aptiv PLC (NYSE: APTV) has priced $1.5 billion of 3.100% Senior Notes due 2051. The Notes will be issued at 97.814% of the principal amount, and proceeds will be used to redeem $700 million of 4.15% Senior Notes due 2024 and $650 million of 4.25% Senior Notes due 2026. Remaining funds will support general corporate purposes. The offering is anticipated to close on November 23, 2021, pending customary conditions. Joint book-running managers for this offering include J.P. Morgan, Citigroup, and Goldman Sachs.

Positive

• Successfully pricing $1.5 billion in Senior Notes, enhancing liquidity.
• Proceeds allocated to redeem higher interest debt, achieving a lower cost of capital.

Negative

• Dependence on the successful completion of the debt offering on November 23, 2021.
• Exposure to potential risks related to the COVID-19 pandemic impacting future operations.

DUBLIN, Nov. 9, 2021 /PRNewswire/ -- Aptiv PLC (NYSE: APTV) , a global technology company focused on making mobility safer, greener and more connected, today announced it priced $1.5 billion principal amount of its 3.100% Senior Notes due 2051 (the "Notes").

The Notes will be issued at a price of 97.814% of its principal amount. A portion of the proceeds from the Notes will be used to fund the redemption of Aptiv's existing $700 million 4.15% Senior Notes due 2024 (the "2024 Notes") and $650 million 4.25% Senior Notes due 2026 (the "2026 Notes") and to pay related premiums, fees and expenses. Any remaining proceeds will be used for general corporate purposes. The offering of the Notes is expected to close on November 23, 2021, subject to customary closing conditions.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC are joint book-running managers for the offering of the Notes.

The offering of the Notes is made only by means of a prospectus. Copies may be obtained by contacting (1) J.P. Morgan Securities LLC at 1-212-834-4533, (2) Citigroup Global Markets Inc. at 1-800-831-9146 or (3) Goldman Sachs & Co. LLC at 1-866-471-2526. The Notes are being offered pursuant to an effective shelf registration statement filed with the U.S. Securities and Exchange Commission (the "SEC") on August 5, 2021.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the Notes, nor will there be any sale of the Notes in any jurisdiction in which such offer, solicitation, or sale would be unlawful. Any offer, solicitation, or sale of the Notes will be made only by means of the prospectus supplement and the accompanying prospectus.

About Aptiv
Aptiv is a global technology company that develops safer, greener and more connected solutions enabling a more sustainable future of mobility.

Forward-Looking Statements
This press release, as well as other statements made by the Company, contain forward-looking statements that reflect, when made, the Company's current views with respect to current events, the proposed offering of the Notes, the redemption of the 2024 Notes and the 2026 Notes, and financial performance, including the uncertainties posed by the COVID-19 pandemic and the difficulty in predicting its future course and its impact on the global economy and the Company's future operations and the potential disruptions in the supply of and changes in the competitive environment for raw material and other materials integral to the Company's products, including the current semiconductor supply shortage on the Company's future operations and balance sheet. Such forward-looking statements are subject to many risks, uncertainties and factors relating to the Company's operations and business environment, which may cause the actual results of the Company to be materially different from the expectations set forth in this press release. All statements that address future operating, financial or business performance or the Company's strategies or expectations are forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements are discussed under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's filings with the SEC. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect the Company. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise, except as may be required by law.

 

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SOURCE Aptiv PLC

FAQ

What is the amount of the Senior Notes offered by Aptiv?

Aptiv has priced $1.5 billion of Senior Notes.

What is the interest rate on the Senior Notes due 2051?

The interest rate is 3.100%.

When is the offering of the Senior Notes expected to close?

The offering is expected to close on November 23, 2021.

What will the proceeds from the Senior Notes be used for?

Proceeds will fund the redemption of existing higher interest Senior Notes and for general corporate purposes.

Who are the joint book-running managers for the offering?

The joint book-running managers include J.P. Morgan, Citigroup, and Goldman Sachs.