Aptiv Announces Pricing of Senior Notes Offering

Rhea-AI Summary

Aptiv PLC (NYSE: APTV) announced the pricing of €750,000,000 principal amount of 4.250% Senior Notes due 2036. The Notes will be co-issued by Aptiv and its subsidiary Aptiv Global Financing , guaranteed by Aptiv Priced at 99.723% of the principal amount, the net proceeds will repay 1.500% euro-denominated senior notes due 2025 and for general corporate purposes. The offering is expected to close on June 11, 2024, subject to customary conditions. Managed by J.P. Morgan Securities plc, Barclays Bank PLC, and BNP Paribas, the Notes are offered via a prospectus under a shelf registration filed with the SEC on February 9, 2022.

Positive

• Pricing of €750,000,000 principal amount of 4.250% Senior Notes due 2036.
• Notes priced at 99.723% of the principal amount, close to par value.
• Net proceeds will repay existing 1.500% euro-denominated senior notes due 2025, reducing higher interest debt.
• Remaining proceeds will be used for general corporate purposes, potentially boosting operational flexibility.
• Offering managed by reputable institutions: J.P. Morgan Securities plc, Barclays Bank PLC, and BNP Paribas.
• Closure expected on June 11, 2024, ensuring timely financial planning.

Negative

• Interest rate on new notes at 4.250%, higher than the 1.500% rate on the notes being repaid, increasing future interest expenses.
• Issuance priced at 99.723% of the principal amount, slightly below par value, indicating potential market discount.
• Dependence on successful closure by June 11, 2024, for financial planning.

DUBLIN--(BUSINESS WIRE)-- Aptiv PLC (NYSE: APTV) (the “Company”), a global technology company focused on making mobility safer, greener and more connected, today announced it priced €750,000,000 principal amount of 4.250% Senior Notes due 2036 (the “Notes”). The Notes will be co-issued by the Company and Aptiv Global Financing Limited, an indirect subsidiary of the Company (together with the Company, the “Issuers”), and will be guaranteed by Aptiv Corporation, an indirect subsidiary of the Company.

The Notes will be issued at a price of 99.723% of the principal amount. The net proceeds from the Notes will be used to repay the Company’s 1.500% euro-denominated senior notes due 2025 in full prior to their maturity, with any remaining net proceeds to be used for general corporate purposes. The offering of the Notes is expected to close on June 11, 2024, subject to customary closing conditions.

J.P. Morgan Securities plc, Barclays Bank PLC and BNP Paribas 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 plc at +44.20.7134.2468 (Non-US investors) or J.P. Morgan Securities LLC collect at +1.212.834.4533 (US investors), (2) Barclays Bank PLC at +1.888.603.5847 or (3) BNP Paribas at +1.800.854.5674. The Notes are being offered pursuant to an effective shelf registration statement, as amended, filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 9, 2022.

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 Aptiv PLC (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, certain investments and acquisitions and financial performance. 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 any future results, express or implied, by such forward-looking statements. 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 include, but are not limited to, the following: global and regional economic conditions, including conditions affecting the credit market; global inflationary pressures; uncertainties created by the conflict between Ukraine and Russia, and its impacts to the European and global economies and our operations in each country; uncertainties created by the conflicts in the Middle East and their impacts on global economies; fluctuations in interest rates and foreign currency exchange rates; the cyclical nature of global automotive sales and production; the potential disruptions in the supply of and changes in the competitive environment for raw material and other components integral to the Company’s products, including the ongoing semiconductor supply shortage; the Company’s ability to maintain contracts that are critical to its operations; potential changes to beneficial free trade laws and regulations, such as the United States-Mexico-Canada Agreement; changes to tax laws; future significant public health crises; the ability of the Company to integrate and realize the expected benefits of recent transactions; the ability of the Company to attract, motivate and/or retain key executives; the ability of the Company to avoid or continue to operate during a strike, or partial work stoppage or slow down by any of its unionized employees or those of its principal customers; and the ability of the Company to attract and retain customers. Additional factors 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 Securities and Exchange Commission, including those set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2024. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240604741978/en/

Investor Contact:

Jane Wu

+1.617.603.7941

jane.wu@aptiv.com

Source: Aptiv PLC

FAQ

What is the principal amount of Aptiv's newly priced Senior Notes?

The principal amount of Aptiv's newly priced Senior Notes is €750,000,000.

What is the interest rate on Aptiv's new Senior Notes?

The interest rate on Aptiv's new Senior Notes is 4.250%.

When are Aptiv's new Senior Notes due?

Aptiv's new Senior Notes are due in 2036.

What will Aptiv use the proceeds from the new Senior Notes for?

Aptiv will use the proceeds to repay its 1.500% euro-denominated senior notes due 2025 and for general corporate purposes.

Who are the joint book-running managers for Aptiv’s Senior Notes offering?

The joint book-running managers are J.P. Morgan Securities plc, Barclays Bank PLC, and BNP Paribas.

When is the expected closing date for Aptiv's new Senior Notes offering?

The expected closing date for Aptiv's new Senior Notes offering is June 11, 2024.

At what price are Aptiv's new Senior Notes being issued?

Aptiv's new Senior Notes are being issued at 99.723% of the principal amount.

What is the stock symbol for Aptiv?

Aptiv's stock symbol is APTV.