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Sensata Technologies Exceeds Cash Tender Offer Cap

Sensata Technologies Holding plc said holders tendered $553.58 million of its 4.000% senior notes due 2029 by the early tender deadline, more than the company’s newly increased $400 million cap for the cash tender offers.

Because the 2029 notes alone exceeded the limit, Sensata expects to accept about $400 million of those bonds, equal to roughly $406.1 million in principal amount at a purchase price of $985 per $1,000. That implies a proration rate of about 69.1448% for the 2029 notes, after excluding notes needed to satisfy minimum denomination rules.

The company said it does not expect to accept any of the 4.375% senior notes due 2030 issued by STI or any of the 5.875% senior notes due 2030 issued by STBV.

Sensata also raised the maximum cash consideration available in the offers from $350 million to $400 million, an increase of $50 million, or about 14.3%.

The early tender deadline passed on May 29, and the withdrawal deadline was the same day. Sensata said the tender offers are scheduled to expire on June 15, but no tenders submitted after the early deadline are expected to be accepted.

Holders of the accepted 2029 notes will receive an early tender premium of $50 per $1,000 principal amount, plus accrued and unpaid interest through the early settlement date, which Sensata expects to set for June 2. The market has reacted to these announcements by moving the company's shares -2.47% to a price of $48.17. If you want to know more, read the company's complete 8-K report here.

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