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Amphenol Corporation (NYSE:APH) announced Monday that it has entered into two unsecured delayed draw term loan credit agreements totaling $4 billion to support its planned acquisition of CommScope Holding Company, Inc.’s (NASDAQ:COMM) Connectivity and Cable Solutions (CCS) business. The company disclosed the agreements in a statement based on a filing with the Securities and Exchange Commission.
On Friday, Amphenol entered into a three-year, $2 billion unsecured delayed draw term loan and a separate 364-day, $2 billion unsecured delayed draw term loan. Both facilities were arranged with a syndicate of financial institutions, with JPMorgan Chase Bank, N.A. serving as administrative agent.
According to the filing, both loan facilities were undrawn at closing and may each be drawn only once during their respective terms. The three-year term loan is scheduled to mature on the third anniversary of its funding date, while the 364-day facility matures 364 days after its funding date. The company may repay either loan at any time without premium or penalty, but once repaid, the loans cannot be reborrowed. With a healthy current ratio of 2.02 and operating with a moderate debt-to-equity ratio of 0.7, Amphenol appears well-positioned to manage this additional debt load.
Interest rates for both loans will be determined by a spread over either the base rate or the adjusted term Secured Overnight Financing Rate (SOFR), with the spread varying based on Amphenol’s debt rating.
Amphenol stated that proceeds from the loans will be used to finance a portion of the consideration for the acquisition of CommScope’s CCS business, as well as related costs, fees, and expenses.
Amphenol’s Class A Common Stock and its 3.125% Senior Notes due 2032 are listed on the New York Stock Exchange under the symbols NYSE:APH and NYSE:APH32, respectively.
This information is based on a press release statement and the company’s recent SEC filing.
In other recent news, Amphenol Corporation announced its intention to acquire Trexon for approximately $1 billion in cash. This acquisition is expected to enhance Amphenol’s sales and earnings per share by about 1.3% within two years of the deal’s closure, anticipated in the fourth quarter of 2025. Additionally, Amphenol plans to purchase CommScope’s Connectivity and Cable Solutions segment for around $10.5 billion in an all-cash transaction, pending shareholder approval, with a projected closing in the first half of 2026.
Analyst firms have responded to these developments with varied insights. Truist Securities maintained its Buy rating on Amphenol, while Evercore ISI raised its price target for the company to $120 from $110, citing the company’s expanding artificial intelligence portfolio. Evercore ISI also reiterated an Outperform rating following the Trexon acquisition announcement. The firm noted that Amphenol’s AI revenue estimates have been revised, with a notable increase in quarterly revenue figures.
These strategic acquisitions and analyst ratings reflect Amphenol’s ongoing efforts to strengthen its market position and expand its technological capabilities. The company’s recent moves are closely watched by investors and analysts alike, as they could significantly influence its future financial performance.
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