Aptiv has begun a $1.5bn private senior notes offering through subsidiaries tied to the planned separation of its Electrical Distribution Systems (EDS) business.
EDS supplies low-voltage and high-voltage power, signal and data distribution systems supporting increasingly feature-rich vehicles, including electric models.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The offering is being carried out by Cyprium Corporation and Cyprium Holdings Luxembourg, subsidiaries of Versigent Limited, the holding company created for Aptiv’s EDS segment ahead of the proposed spin-off.
The issuance includes senior notes due in 2031 and 2034.
Cyprium Corporation and Cyprium Holdings Luxembourg, referred to as the co-issuers, will jointly issue the notes.
In parallel with the offering, the co-issuers have arranged additional financing facilities.
These include an $850m senior secured revolving credit facility and a $500m senior secured term loan facility.
Both are part of the broader financing framework linked to the separation of the EDS business.
After the separation is completed, the co-issuers intend to use proceeds from the notes offering, along with borrowings under the term loan facility, to fund a dividend payment to Aptiv.
Versigent is expected to retain $300m in cash following the dividend payment and after covering estimated transaction fees and expenses.
The remaining funds will support general corporate activities.
Funds raised from the notes offering will be placed in escrow for noteholders until conditions tied to the completion of the spin-off are met.
Aptiv said the EDS division’s engineering capabilities allow optimisation of vehicle architecture systems, helping reduce vehicle weight, mass and cost for original equipment manufacturer customers.
