Aptiv’s Versigent to Issue $1.6B Debt, Secures $1.35B Credit Facilities
Versigent, Aptiv’s soon-to-be-spun EDS subsidiary, raised $1.6 billion via 6.125% senior notes due 2031 and 6.375% notes due 2034, up $100 million from its initial plan. The financing includes an $850 million revolver and $500 million term loan, with proceeds funding a pre-spinoff dividend and retaining $400 million cash.
1. Debt Offering Details
The subsidiaries of Versigent priced a private offering of $1.6 billion in senior notes, including $800 million of 6.125% notes due 2031 and $800 million of 6.375% notes due 2034, exceeding the initial $1.5 billion target by $100 million.
2. Credit Facilities Secured
Alongside the bond issuance, the issuers entered into an $850 million senior secured revolving credit facility and a $500 million senior secured term loan credit facility to bolster liquidity.
3. Allocation of Proceeds
Proceeds from the offering and term loan borrowings will fund a dividend to Aptiv prior to the spinoff, with Versigent retaining $400 million in cash post-dividend for general corporate purposes.
4. Spinoff Execution Plan
The financing transactions are tied to the planned separation of Versigent from Aptiv via a spinoff to shareholders, with the offering expected to close on March 18 subject to customary conditions.