WALLINGFORD, CT - Amphenol Corporation (NYSE:APH), a leading manufacturer of electronic connectors, has successfully issued $1.5 billion in senior notes, according to a recent SEC filing. The offering, completed today, involves the sale of $250 million in additional 5.050% senior notes due 2027, $750 million in 5.000% senior notes due 2035, and $500 million in 5.375% senior notes due 2054.
The company, which is incorporated in Delaware and headquartered in Wallingford, Connecticut, stated that the net proceeds, after underwriting discounts and estimated offering expenses, amount to approximately $1.477.4 million. These funds, alongside cash on hand, are intended to finance the acquisition of CommScope Holding (NASDAQ:COMM) Company, Inc.'s Outdoor Wireless Networks segment and Distributed Antenna Systems business.
The notes were offered under an existing shelf registration and were sold through an underwriting agreement with Barclays Capital Inc., BNP Paribas (OTC:BNPQY) Securities Corp., BofA Securities, Inc., and HSBC Securities (USA) Inc., acting as representatives of the underwriters.
The additional 2027 notes are a continuation of a series initially issued on April 5, 2024, and will trade interchangeably with the existing notes. The 2035 and 2054 notes come with a special mandatory redemption clause, which stipulates that should the CommScope acquisition not be completed by a certain date, the notes will be subject to redemption.
Amphenol Corporation's senior notes are unsecured and rank pari passu with its other unsecured unsubordinated indebtedness. Interest on the notes will be paid semi-annually, with different maturity dates for each series: April 5, 2027, for the additional 2027 notes; January 15, 2035, for the 2035 notes; and November 15, 2054, for the 2054 notes.
InvestingPro Insights
Amphenol Corporation's recent $1.5 billion senior notes issuance aligns with its strong financial position and growth strategy. According to InvestingPro data, the company boasts a substantial market capitalization of $80.94 billion, reflecting its significant presence in the Electronic Equipment, Instruments & Components industry.
Amphenol's revenue growth is noteworthy, with a 14.17% increase over the last twelve months and an impressive 26.24% quarterly growth in Q3 2024. This robust top-line performance supports the company's ability to take on additional debt for strategic acquisitions like the CommScope segment purchase.
InvestingPro Tips highlight Amphenol's financial strength and shareholder-friendly policies. The company has maintained dividend payments for 20 consecutive years and has raised its dividend for 12 consecutive years, demonstrating a commitment to returning value to shareholders. This consistent dividend policy, coupled with a current dividend yield of 0.97%, may appeal to income-focused investors.
It's worth noting that Amphenol is trading near its 52-week high, with a price at 94.12% of its 52-week peak. This could indicate investor confidence in the company's growth prospects and strategic decisions, such as the recent bond issuance and planned acquisition.
For investors seeking more comprehensive analysis, InvestingPro offers 16 additional tips on Amphenol, providing deeper insights into the company's financial health and market position.
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