SCHAFFHAUSEN, Switzerland - Aptiv PLC (NYSE:APTV) announced pricing terms today for its cash tender offer to purchase up to $1.37 billion in outstanding notes through its subsidiary Aptiv Swiss Holdings Limited.
The technology company set total consideration ranging from $640.18 to $1,023.34 per $1,000 principal amount across seven series of notes, according to a press release statement. The pricing was determined using fixed spreads over U.S. Treasury Security yields as of 10:00 a.m. New York time today. The tender offer comes as Aptiv carries total debt of approximately $8.1 billion with a debt-to-equity ratio of 0.88, though the company maintains liquid assets exceeding short-term obligations.
The tender offer covers notes with maturities ranging from 2032 to 2054. The 5.150% Senior Notes due 2034 received the highest total consideration at $1,023.34 per $1,000 principal amount, while the 3.100% Senior Notes due 2051 received the lowest at $640.18.
Notes tendered by the early deadline include a $30 per $1,000 principal amount premium. Holders tendering after the early deadline but before expiration will receive consideration minus this premium. All payments include accrued interest through the settlement date, expected to be April 7, 2026.
The offer is subject to conditions including completion of Aptiv's previously announced separation of its Electrical Distribution Systems business into Versigent, a new independent public company. Aptiv must receive a special dividend of at least $1.7 billion from Versigent in connection with the spin-off.
According to InvestingPro analysis, Aptiv appears undervalued at current levels.
The tender offer expires at 5:00 p.m. New York time on April 3, 2026, unless extended or terminated.
Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are serving as dealer managers. Global Bondholder Services Corporation is the tender and information agent.
In other recent news, Aptiv PLC has been the focus of several significant developments. UBS has reiterated its Buy rating on Aptiv, setting a price target of $97, as the company prepares for the spin-off of Versigent, scheduled for April 1. The anticipated value creation from this spin-off has led UBS to upgrade Aptiv from a Neutral to a Buy rating, highlighting positive risk/reward aspects. This adjustment reflects the market’s pricing which accounts for more than the risks associated with both businesses involved.
Additionally, Aptiv announced that Javed Khan, Executive Vice President and President of Intelligent Systems, will resign effective March 30 to become CEO at a software and AI company. Following his departure, Aptiv’s CEO Kevin Clark will temporarily assume Khan’s responsibilities as President of Intelligent Systems. Khan will continue to contribute to Aptiv by joining its Technology Advisory Committee. These recent developments underscore the strategic shifts and leadership adjustments within Aptiv.