WALLINGFORD – Amphenol Corporation (NYSE: NYSE:APH), a global interconnect solutions provider, announced the pricing for a significant offering of senior notes totaling $1.5 billion, expected to close on April 5, 2024.
The offering comprises three series of notes: $450 million due in 2027, another $450 million due in 2029, and $600 million due in 2034, with annual interest rates of 5.050% for the 2027 and 2029 notes, and 5.250% for the 2034 notes.
The company has stated that the net proceeds from the notes offering will be used primarily to fund its pending acquisition of the Carlisle Interconnect Technologies business from Carlisle Companies (NYSE:CSL) Incorporated. Any remaining funds will be directed towards general corporate purposes. This acquisition is part of Amphenol’s strategy to expand its presence in the interconnect market.
The notes are subject to a special mandatory redemption at 101% of the principal amount, plus accrued and unpaid interest, under certain conditions if the acquisition does not proceed as planned.
BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, and TD (TSX:TD) Securities (USA) LLC are acting as joint book-running managers for the offering. The notes are being offered through Amphenol’s effective shelf registration statement filed with the Securities and Exchange Commission (SEC), and a prospectus supplement detailing the offering terms will be filed with the SEC.
Amphenol is a leading designer and manufacturer in the interconnect industry, with a diverse product portfolio that includes electrical, electronic, and fiber optic connectors, antennas, sensors, and specialty cables. The company operates in approximately 40 countries and serves various high-growth sectors such as automotive, aerospace, defense, industrial, and telecommunications.
This press release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any of the notes, nor shall there be any sale of the notes in any jurisdiction where such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
The information in this article is based on a press release statement from Amphenol Corporation.
InvestingPro Insights
As Amphenol Corporation (NYSE: APH) gears up for its significant senior notes offering, investors are closely watching the company's financial metrics and market performance. According to InvestingPro data, Amphenol has a market capitalization of approximately $67.85 billion and is trading at a P/E ratio of 34.94, reflecting a high earnings multiple.
This is slightly adjusted from the last twelve months as of Q4 2023, where the P/E ratio stood at 34.76. The company's price to book ratio is also on the higher side at 8.13, indicating a premium valuation in the market.
Despite a slight decline in revenue growth by 0.54% over the last twelve months as of Q4 2023, Amphenol has shown a quarterly revenue growth of 2.73% in Q4 2023. This suggests a potential for rebounding sales, which could be a positive indicator for investors considering the pending acquisition of Carlisle Interconnect Technologies. Moreover, with a gross profit margin of 32.53% and an operating income margin of 20.66%, the company demonstrates strong profitability metrics.
Among the InvestingPro Tips, it's noteworthy that Amphenol has raised its dividend for 12 consecutive years and has maintained dividend payments for 20 consecutive years, signifying its commitment to shareholder returns. Additionally, the company is recognized as a prominent player in the Electronic Equipment, Instruments & Components industry and operates with a moderate level of debt, which could be reassuring for investors concerned about financial stability.
For those interested in further insights, there are 16 additional InvestingPro Tips available, which could provide a deeper analysis of Amphenol's investment potential. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering a comprehensive look at the company's financial health and market standing.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.