May 12, 2011
/PRNewswire/ -- Sensata Technologies Holding N.V. (NYSE: ST) ("Sensata"), a global designer and manufacturer of sensors and controls, today announced the completion of a series of financing transactions by its wholly–owned subsidiary, Sensata Technologies B.V. (the "Issuer"), designed to refinance substantially all of its existing indebtedness. These transactions included:
- The issuance and sale of $700 million in aggregate principal amount of 6.5% senior notes due 2019 of the Issuer (the "New Senior Notes") in a private offering; and
- The execution of new senior secured credit facilities (the "New Credit Facilities") that provide the Issuer with a $1,100 million seven year term loan facility and a $250 million five year revolving credit facility.
The New Senior Notes were issued at par and the term loans were issued at 99.5% of par. The term loan facility bears interest at variable rates which includes a LIBOR index rate (subject to a floor of 100 basis points) plus 300 basis points.
The proceeds from the New Credit Facilities and the New Senior Notes together with cash on hand were or will be promptly used to (i) repay all of the amounts currently outstanding under the Issuer's existing term loans, 8% Senior Notes due 2014 (the "Dollar Notes") and 9% Senior Subordinated Notes due 2016 (the "Euro Notes" and together with the Dollar Notes, the "Notes"), (ii) pay all accrued interest on such indebtedness and related redemption premiums and (iii) pay all fees and expenses in connection with these refinancing transactions.
Sensata expects to write-off existing deferred financing costs and recognize as expense certain costs associated with the redemption of the Notes totaling approximately
. In addition, Sensata will capitalize other transaction costs and fees totaling approximately
, which will be amortized to interest expense over the term of the New Senior Notes and the New Credit Facilities.
In connection with the previously announced cash tender offers and consent solicitations with respect to all of the Issuer's outstanding Notes, the Issuer accepted for payment and has repurchased: (i)
aggregate principal amount of the Dollar Notes, which notes had been validly tendered (and not validly withdrawn) as of
New York City
May 11, 2011
(the "Consent Date"), and (ii)
aggregate principal amount of the Euro Notes, which notes had been validly tendered (and not validly withdrawn) as of the Consent Date. Holders of the Dollar Notes received total consideration of
principal amount of such Notes and holders of the Euro Notes received total consideration of
principal amount of such Notes, plus in each case, accrued interest up to, but not including,
May 12, 2011
Holders who validly tender their Notes after the Consent Date, but on or prior to
New York City
May 25, 2011
, unless extended or earlier terminated by the Issuer (the "Expiration Date"), and whose Notes are accepted for payment, will receive: (i) with respect to Dollar Notes, the tender offer consideration equal to
principal amount of such Notes, and (ii) with respect to Euro Notes, the tender offer consideration equal to
principal amount of such Notes, plus in each case, accrued interest up to, but not including, the applicable payment date of the Notes (the "Tender Offer Consideration"). Holders of Notes who tender after the Consent Date will not receive the consent payment.
Subject to the terms and conditions of the tender offers and consent solicitations, the Issuer will, following the Expiration Date, accept for purchase all the Dollar Notes and/or the Euro Notes (such time, the "Final Acceptance Time") validly tendered after the Consent Date and prior to the Expiration Date. The Issuer will pay the Tender Offer Consideration for the Dollar Notes and the Euro Notes accepted for purchase at the Final Acceptance Time on a date (the "Final Payment Date") promptly following the Final Acceptance Time. The Issuer currently expects that the Final Payment Date will be
May 26, 2011
Any Notes not tendered and purchased pursuant to the tender offers will remain outstanding and, to the extent that the requisite consents are received, the holders thereof will be bound by the proposed amendments to the indentures governing the Notes contained in the applicable supplemental indenture even though they have not consented to the proposed amendments.