May 6, 2011
Sensata Technologies Holding N.V. (NYSE: ST) ("Sensata") today announced that its wholly-owned subsidiary, Sensata Technologies B.V. (the "Issuer"), has priced
in aggregate principal amount of 6.5% senior notes due 2019 (the "Notes") in connection with a private offering that is exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"). The size of the offering was increased from the previously announced
, and consequently the term loan facility under the Issuer's new senior secured credit facility will be reduced by the same amount. The Notes were priced at 100% of par. The closing of the offering is expected to occur on
May 12, 2011
, subject to certain closing conditions, including the effectiveness of the Issuer's new senior secured credit facility.
The Notes will be guaranteed on a senior unsecured basis by all of the Issuer's existing and future wholly-owned subsidiaries that guarantee the Issuer's new senior secured credit facility, and the Notes and the guarantees will rank equally with any senior indebtedness the Issuer or the guarantors incur. The Notes and the guarantees will be senior to all of the Issuer's and the guarantors' future indebtedness that is expressly subordinated to the Notes and the guarantees. The Notes and the guarantees will be effectively junior to the Issuer's and the guarantors' secured indebtedness to the extent of the assets securing that indebtedness, including obligations under the Issuer's new senior secured credit facility.
Sensata intends to use the net proceeds from the offering together with borrowings under the new credit facility and cash on hand to (i) repay amounts currently outstanding under its existing term loans, 8% senior notes due 2014 and 9% senior subordinated notes due 2016, (ii) pay accrued interest on such indebtedness and related redemption premiums and (iii) pay fees and expenses in connection with these refinancing transactions.