BorgWarner Announces Pricing of Cash Tender Offers for its Senior Notes
BorgWarner Inc. (NYSE: BWA) has announced the pricing of its cash tender offers for its outstanding 3.375% Senior Notes due 2025 and 5.000% Senior Notes due 2025. The tender offers will expire at 5:00 p.m., New York City time, on August 13, 2024, unless extended or terminated earlier. The tender offer consideration for the 3.375% Notes is $992.38 per $1,000 principal amount, while for the 5.000% Notes it's $1,006.66 per $1,000 principal amount.
The company expects the settlement date to be August 16, 2024. Holders whose Notes are purchased will receive accrued and unpaid interest. The tender offers are subject to certain conditions, including a financing condition, but not a minimum tender condition. BofA Securities, Citigroup Global Markets, and Wells Fargo Securities are acting as dealer managers for the tender offers.
BorgWarner Inc. (NYSE: BWA) ha annunciato i prezzi delle sue offerte di acquisto in contante per le sue obbligazioni senior del 3,375% in scadenza nel 2025 e del 5,000% in scadenza nel 2025. Le offerte di acquisto scadranno alle 17:00, ora di New York, il 13 agosto 2024, salvo proroghe o cessazioni anticipate. Il corrispettivo dell'offerta per le obbligazioni al 3,375% è di $992.38 per un importo nominale di $1,000, mentre per le obbligazioni al 5,000% è di $1,006.66 per un importo nominale di $1,000.
L'azienda prevede che la data di regolamento sarà il 16 agosto 2024. I titolari le cui obbligazioni vengono acquistate riceveranno interessi maturati e non pagati. Le offerte di acquisto sono soggette a determinate condizioni, inclusa una condizione di finanziamento, ma non a una condizione di acquisto minimo. BofA Securities, Citigroup Global Markets e Wells Fargo Securities stanno agendo come manager dealer per le offerte di acquisto.
BorgWarner Inc. (NYSE: BWA) ha anunciado los precios de sus ofertas de compra en efectivo por sus Notas Senior del 3.375% con vencimiento en 2025 y del 5.000% con vencimiento en 2025. Las ofertas de compra expirarán a las 5:00 p.m., hora de la ciudad de Nueva York, el 13 de agosto de 2024, a menos que se prorrogue o se cancelen antes. La consideración de la oferta para las Notas del 3.375% es de $992.38 por un monto principal de $1,000, mientras que para las Notas del 5.000% es de $1,006.66 por un monto principal de $1,000.
La empresa espera que la fecha de liquidación sea el 16 de agosto de 2024. Los tenedores cuyas Notas sean compradas recibirán intereses acumulados y no pagados. Las ofertas de compra están sujetas a ciertas condiciones, incluida una condición de financiamiento, pero no a una condición de compra mínima. BofA Securities, Citigroup Global Markets y Wells Fargo Securities están actuando como gerentes de negociación de las ofertas de compra.
BorgWarner Inc. (NYSE: BWA)는 2025년 만기 3.375% 선순위 채권과 5.000% 선순위 채권에 대한 현금 공개매수를 발표했습니다. 공개매수는 2024년 8월 13일 오후 5시(뉴욕 시간)에 만료되며, 연장되거나 조기 종료되지 않는 한 유효합니다. 3.375% 채권에 대한 공개매수 가격은 $992.38이며, 5.000% 채권에 대해서는 $1,006.66입니다.
회사는 결제일이 2024년 8월 16일이 될 것으로 예상하고 있습니다. 채권이 매수된 보유자는 발생한 미지급 이자를 받을 수 있습니다. 공개매수는 특정 조건, 특히 자금 조달 조건에 따르지만 최저 매수 조건은 없습니다. BofA Securities, Citigroup Global Markets 및 Wells Fargo Securities는 공개매수의 딜러 매니저로 활동하고 있습니다.
BorgWarner Inc. (NYSE: BWA) a annoncé le prix de ses offres de rachat en espèces pour ses Obligations Senior de 3,375% arrivant à échéance en 2025 et de 5,000% arrivant également à échéance en 2025. Les offres expireront à 17h00, heure de New York, le 13 août 2024, sauf prolongation ou résiliation anticipée. La contrepartie de l'offre pour les Obligations à 3,375% est de $992.38 pour un montant principal de $1,000, tandis que pour les Obligations à 5,000%, elle est de $1,006.66 pour un montant principal de $1,000.
L'entreprise s'attend à ce que la date de règlement soit le 16 août 2024. Les détenteurs dont les Obligations sont achetées recevront des intérêts courus et non payés. Les offres sont soumises à certaines conditions, y compris une condition de financement, mais pas à une condition d'offre minimale. BofA Securities, Citigroup Global Markets et Wells Fargo Securities agissent en tant que gestionnaires de négociation pour les offres.
BorgWarner Inc. (NYSE: BWA) hat die Preise seiner Barangebote für die ausstehenden 3,375% Senior Notes mit Fälligkeit 2025 und 5,000% Senior Notes mit Fälligkeit 2025 bekannt gegeben. Die Angebote laufen bis zum 13. August 2024 um 17:00 Uhr New Yorker Zeit, es sei denn, sie werden verlängert oder früher beendet. Die Angebotsüberlegung für die 3,375% Notes beträgt $992.38 pro $1,000 Nennbetrag, während es für die 5,000% Notes $1,006.66 pro $1,000 Nennbetrag beträgt.
Das Unternehmen erwartet, dass das Abrechnungsdatum der 16. August 2024 sein wird. Halter, deren Notes gekauft werden, erhalten aufgelaufene und unbezahlte Zinsen. Die Angebote unterliegen bestimmten Bedingungen, einschließlich einer Finanzierungsbedingung, jedoch nicht einer Mindestannahmebedingung. BofA Securities, Citigroup Global Markets und Wells Fargo Securities fungieren als Händlermanager für die Angebote.
- Tender offers provide an opportunity for noteholders to cash out at a premium
- The company is actively managing its debt structure, potentially improving its financial position
- The tender offers may result in increased debt expenses for the company
- The financing condition introduces uncertainty to the completion of the tender offers
Insights
BorgWarner's tender offer for its 2025 senior notes is a strategic move to manage its debt profile. The company is offering to buy back
The tender offer, subject to a financing condition, indicates BorgWarner is likely planning to refinance these notes at potentially more favorable terms, given the current interest rate environment. This proactive debt management could lead to reduced interest expenses and improved financial flexibility for the company. However, the impact on BorgWarner's balance sheet and cash flow will depend on the participation rate and the terms of any new debt issuance.
BorgWarner's tender offer is a textbook example of liability management. By repurchasing these notes before maturity, the company is likely aiming to extend its debt maturity profile and potentially lower its overall interest costs. The pricing of the tender offers reflects current market conditions, with the 5% notes commanding a premium due to their higher coupon rate.
The "financing condition" mentioned suggests BorgWarner may be planning to issue new debt to fund this repurchase. If successful, this could result in a more efficient capital structure. However, investors should monitor the terms of any new debt issuance to fully assess the impact on BorgWarner's financial health. The company's ability to refinance at favorable rates will be important in determining the long-term benefit of this transaction.
Certain information regarding the Notes and the pricing for the Tender Offers is set forth in the table below.
Title of | CUSIP No. | Principal Amount Outstanding | Reference Yield(1) | Bloomberg Reference Page | Fixed | Tender Offer Consideration(3) | |
099724AJ5 | 4.717 % | FIT3 | 0 bps | ||||
099724AM8 / U0560UAA0 | 4.382 % | FIT4 | 0 bps |
(1) | Each Reference Yield was determined at 10:00 a.m., |
(2) | Payable per each |
Holders must validly tender (and not validly withdraw) or deliver a properly completed and duly executed Notice of Guaranteed Delivery for their Notes at or prior to the Expiration Time to receive the applicable Tender Offer Consideration. Additionally, holders whose Notes are purchased in the Tender Offers will receive accrued and unpaid interest from the last interest payment date of the Notes of each series to, but not including, the Settlement Date (as defined in the Offer to Purchase). The Company expects the Settlement Date to occur on August 16, 2024.
The Tender Offers will expire at 5:00 p.m.,
The Company's obligation to accept for purchase and to pay for Notes of each series validly tendered and not validly withdrawn pursuant to the Tender Offers is subject to the satisfaction or waiver, in the Company's discretion, of a financing condition and certain other conditions, which are more fully described in the Offer to Purchase. The Tender Offers are not subject to a minimum tender condition. The complete terms and conditions of the Tender Offers, including complete instructions on how to tender Notes, are set forth in the Tender Offer Documents. Holders of Notes are urged to read the Tender Offer Documents carefully.
Information Relating to the Tender Offers
The Offer to Purchase is being distributed to holders beginning today. BofA Securities, Inc., Citigroup Global Markets Inc. and Wells Fargo Securities, LLC are the dealer managers for the Tender Offers. Investors with questions regarding the Tender Offers may contact BofA Securities, Inc. at (980)-387-5602 (toll-free) or email debt_advisory@bofa.com, Citigroup Global Markets Inc. at (800) 558-3745 (toll-free) or (212) 723-6106 (collect) or email ny.liabilitymanagement@citi.com and Wells Fargo Securities, LLC at (866) 309-6316 (toll-free) or (704) 410-4759 (collect) or email liabilitymanagement@wellsfargo.com. Global Bondholder Services Corporation is the tender and information agent for the Tender Offers and can be contacted at (212) 430-3774 or toll-free at (855) 654-2015 or at the following web address: https://www.gbsc-usa.com/borgwarner.
None of the Company or its affiliates, their respective boards of directors or managers, the dealer manager, the information agent, the tender agent, the trustees or any of their respective affiliates makes any recommendation as to whether holders should tender Notes of a series in response to the Tender Offers. Each holder must make his, her or its own decision as to whether to tender Notes and, if so, as to what principal amount of Notes to tender.
This press release shall not constitute an offer to sell, a solicitation to buy or an offer to purchase or sell any securities. The Tender Offers are being made only pursuant to the Offer to Purchase and only in such jurisdictions as is permitted under applicable law.
About BorgWarner
For more than 130 years, BorgWarner (NYSE: BWA) has been a transformative global product leader bringing successful mobility innovation to market. Today, we're accelerating the world's transition to eMobility – to help build a cleaner, healthier, safer future for all.
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SOURCE BorgWarner Inc.
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