TE Connectivity Prices $750 Million Senior Notes Offering
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Newsfilter
- Offering Size: TE Connectivity's indirect subsidiary, Tyco Electronics Group S.A., has successfully priced a $750 million senior notes offering, which includes $200 million of 2031 notes and $550 million of 2036 notes, indicating strong demand in the capital markets.
- Interest Rates and Pricing: The 2031 notes carry an interest rate of 4.500% with an issuance price of 100.907%, while the 2036 notes have a rate of 4.875% at a price of 99.718%, reflecting the company's ability to maintain stable financing costs in the current interest rate environment.
- Use of Proceeds: The net proceeds from this offering will be utilized to repay maturing debt, including $370 million and $450 million senior notes, aimed at optimizing the company's capital structure and reducing financial risk, thereby enhancing future financial flexibility.
- Underwriter Lineup: The offering is managed by BNP Paribas, Citigroup, Deutsche Bank, and Goldman Sachs, with an expected closing date of February 9, 2026, showcasing market confidence and support for TE Connectivity.
Analyst Views on TEL
Wall Street analysts forecast TEL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TEL is 270.70 USD with a low forecast of 240.00 USD and a high forecast of 297.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
7 Buy
3 Hold
0 Sell
Moderate Buy
Current: 223.840
Low
240.00
Averages
270.70
High
297.00
Current: 223.840
Low
240.00
Averages
270.70
High
297.00
About TEL
TE Connectivity plc is a global industrial technology company. The Company’s range of connectivity and sensor solutions enable the distribution of power, signal, and data to advance next generation transportation, renewable energy, automated factories, data centers, medical technology, and more. The Company operates through two segments: Transportation Solutions and Industrial Solutions. Transportation Solutions segment includes its automotive, commercial transportation, and sensor businesses. The Industrial Solutions segment includes its aerospace, defense, and marine; medical; energy; digital data networks, and automation and connected living businesses. Its services and training include 3D Printing For Production (3D4P), Backshells Prototyping - BIT Workx, Electrical Installation Trainings, HarnWare Software, Machine Tooling Service & Repair, Medical Device Design Services, Microfluidic Devices and THE ACADEMY - Automotive Webinars.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
