Aptiv plc, a global industrial technology company, has announced the pricing and upsizing of a private offering of $1.6 billion aggregate principal amount of senior notes by its electrical distribution systems spin-off subsidiaries, Cyprium Corporation and Cyprium Holdings Luxembourg S.à r.l.
The private offering consists of $800,000,000 aggregate principal amount of 6.125% senior notes due 2031 and $800,000,000 aggregate principal amount of 6.375% senior notes due 2034. This represents an increase of $100 million in aggregate principal amount of the notes from the previously announced offering size of $1.5 billion.
The offering is expected to close on March 18, 2026, subject to customary closing conditions. Additionally, the co-issuers have entered into a $850 million senior secured revolving credit facility and a $500 million senior secured term loan credit facility as part of the financing transactions.
Following the completion of the spin-off, the co-issuers intend to use the proceeds from the offering, along with borrowings under the term loan facility, to fund a dividend to Aptiv in an amount such that Versigent retains $400 million of cash on its balance sheet after giving effect to the dividend and the payment of estimated fees and expenses in connection with the financing transactions. This retained amount will be used for general corporate purposes of Versigent.
The notes have been offered for sale to qualified institutional buyers in an offering exempt from registration pursuant to Rule 144A under the U.S. Securities Act of 1933, as well as to persons outside the United States in compliance with Regulation S under the Securities Act.
Versigent, the recently formed holding company for Aptiv’s electrical distribution systems segment, is described as a leading global provider of signal, power, and data distribution systems for the automotive and commercial vehicle markets. The company designs and manufactures advanced low* and high-voltage electrical architectures that enable safe, efficient, and reliable vehicle performance.
Aptiv, on the other hand, is a global industrial technology company focused on enabling more automated, electrified, and digitalized solutions across multiple end-markets. The market has reacted to these announcements by moving the company's shares -4.84% to a price of $78.61. For the full picture, make sure to review Aptiv PLC's 8-K report.
