Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
GALWAY, Ireland - TE Connectivity plc (NYSE: TEL), a global industrial technology leader with a market capitalization of $43.21 billion and a current stock price of $145.25, has announced the pricing of a $900 million senior notes offering through its indirect wholly-owned subsidiary, Tyco Electronics Group S.A. (TEGSA). According to InvestingPro data, the company maintains a GOOD financial health score and operates with moderate debt levels. The offering includes two sets of notes: $450 million with a 4.500% interest rate due 2031, and another $450 million at 5.000% due 2035.
The senior notes due 2031 are being offered at 99.516% of their aggregate principal amount and will pay interest semi-annually. Similarly, the senior notes due 2035 will be issued at 98.947% of their aggregate principal amount with the same interest payment frequency.
This offering is part of an effective registration statement filed on October 1, 2024, which includes a prospectus and a prospectus supplement dated today. The closing of the offering is anticipated on May 9, 2025.
TE Connectivity intends to allocate the net proceeds from this offering, in conjunction with the net proceeds from a concurrent Euro notes offering, towards general corporate purposes. These include the repayment of debt incurred from the acquisition of Richards Manufacturing business. InvestingPro analysis shows the company’s strong cash flows can sufficiently cover interest payments, with an EBITDA of $3.85 billion in the last twelve months.
A consortium of banks, including Barclays Capital Inc., BNP Paribas Securities Corp., BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, and Scotia Capital (USA) Inc., are serving as joint book-running managers for the offering.
The announcement made clear that this does not constitute an offer to sell or a solicitation of offers to buy any security. Moreover, such an offer, solicitation, or sale would be unlawful in jurisdictions where it is unauthorized.
TE Connectivity is known for its connectivity and sensor solutions that serve various sectors, including transportation, energy, industrial automation, data centers, and medical technology. The company has a workforce of over 85,000 employees, including 9,000 engineers, operating in around 130 countries. As a testament to its financial stability, InvestingPro data reveals the company has raised its dividend for 14 consecutive years, currently offering a 1.96% yield. Discover more insights about TE Connectivity and 1,400+ other companies through comprehensive Pro Research Reports, available exclusively on InvestingPro.
This news report is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. Factors that could cause actual results to differ materially from those anticipated are detailed in TE Connectivity’s regulatory filings with the U.S. Securities and Exchange Commission.
In other recent news, TE Connectivity reported impressive fiscal second-quarter results, beating analysts’ expectations. The company posted adjusted earnings of $2.10 per share, surpassing the consensus estimate of $1.96, and achieved a 4% year-over-year revenue increase to $4.1 billion, exceeding the projected $3.96 billion. TE Connectivity also provided strong guidance for the fiscal third quarter, forecasting adjusted earnings of approximately $2.06 per share and revenue of about $4.3 billion, both above Wall Street expectations. The company’s Industrial segment notably expanded its operating margin, driven by a 17% sales growth across AI, aerospace, and energy applications. In a separate development, HSBC analysts upgraded TE Connectivity’s stock from Hold to Buy, raising the price target to $175 from $166. This upgrade is based on the company’s valuation and growth prospects, with a forecasted non-GAAP EPS of $8.73 for the next 12 months. HSBC analysts highlighted the potential 31% upside from the current share price, considering the stock a valuable opportunity for investors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.