Sensata Technologies Holding plc Announces Upcoming Redemption of 5.000% Senior Notes due 2025 by Sensata Technologies B.V.
Sensata Technologies Holding, listed on NYSE as ST, has announced that its subsidiary, Sensata Technologies B.V., will redeem all $700 million of its 5.000% Senior Notes due 2025. The redemption is set for July 15, 2024, at a price equal to 100% of the principal amount plus an applicable premium and accrued interest up to the redemption date. The notice of redemption will be issued by The Bank of New York Mellon, the trustee for the notes. This action aims to settle the outstanding debt within the specified timeline.
- Redemption of $700 million Senior Notes due 2025 will reduce outstanding debt.
- Redemption price includes 100% of principal amount plus applicable premium and accrued interest, ensuring fair value for noteholders.
- Scheduled redemption date is July 15, 2024, providing a clear timeline for debt reduction.
- Potential cash outflow of $700 million plus premiums and accrued interest may impact liquidity.
- No mention of sources of funds for redemption, raising questions about financial strategy.
Insights
Sensata Technologies' decision to redeem its
For retail investors, this action may indicate that Sensata is confident in its cash flows and liquidity position, which is generally a promising sign. However, it is also important to consider how Sensata plans to finance this redemption. If they are using internal cash reserves, it shows strong cash flow generation, but if they are refinancing with new debt, the terms of the new debt will be important to evaluate the financial impact.
Another aspect to consider is the impact on Sensata's future earnings. Reducing debt with higher interest rates should lower interest expenses, potentially increasing net income. However, investors should watch out for any new debt issuance that may offset these benefits. Investors should also consider the premium and accrued interest that will be paid upon redemption, as this will be a cash outflow impacting short-term liquidity.
The Issuer expects to redeem the Notes on July 15, 2024 (the “Redemption Date”) at a redemption price equal to
The notice of redemption is being delivered to all registered holders of the Notes by The Bank of New York Mellon, the trustee for the Notes (the “Trustee”). Copies of the notice of redemption may be obtained from the Trustee by calling 1-800-254-2826.
This press release is for informational purposes only and shall not constitute an offer to sell or a solicitation of an offer to buy the Notes or any other securities.
About Sensata Technologies
Sensata Technologies is a global industrial technology company striving to create a cleaner, more efficient, electrified and connected world. Through its broad portfolio of sensors, electrical protection components and sensor-rich solutions which create valuable business insights, Sensata helps its customers address increasingly complex engineering and operating performance requirements. With more than 21,000 employees and global operations in 16 countries, Sensata serves customers in the automotive, heavy vehicle & off-road, industrial, and aerospace markets.
Safe Harbor Statement
Statements in this release which are not historical facts, such as those that may be identified by the use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “feel,” “forecast,” “intend,” “may,” “plan,” “potential,” “project,” “should,” “would,” and similar expressions, are forward-looking statements under the provisions of the Private Securities Litigation Reform Act of 1995. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These risks and uncertainties include, but are not limited to, the consummation of the offering by the Issuer and the use of proceeds. Detailed information about some of the other known risks is included in our Annual Report on Form 10-K for the year ended December 31, 2023 and our other reports filed with the Securities and Exchange Commission. Because actual results could differ materially from our intentions, plans, expectations, assumptions and beliefs about the future, you are urged to view all forward-looking statements contained in this news release with caution. Except as required by applicable law, we do not undertake to publicly update or revise any of these forward-looking statements, whether as a result of new information, future events, or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240606013557/en/
Media & Investor Contact:
Alexia Taxiarchos
+1 (508) 236-1761
ataxiarchos@sensata.com
investors@sensata.com
Source: Sensata Technologies Holding plc
FAQ
What is Sensata Technologies B.V. planning to redeem?
When is the redemption date for Sensata Technologies B.V.'s notes?
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