SWINDON, United Kingdom - Sensata Technologies Holding plc (NYSE: ST), a global industrial technology company, announced its intention to offer $500 million in senior notes through its subsidiary, Sensata Technologies, Inc. This private offering, exempt from registration under the Securities Act of 1933, is subject to market conditions and other customary considerations.
The proposed notes will be guaranteed by Sensata Technologies B.V. (STBV) and certain of STBV's wholly-owned subsidiaries. These guarantees will place the notes on equal footing with the issuer's existing and future senior indebtedness, including senior credit facilities and existing senior notes. Still, the notes will be subordinate to any secured indebtedness up to the value of the collateral assets and structurally subordinated to obligations of non-guarantor subsidiaries.
Sensata intends to allocate the net proceeds from the notes, along with available cash, to redeem STBV's 5.000% senior notes due on October 1, 2025. The redemption is expected to occur in July 2024.
The offering targets qualified institutional buyers and non-U.S. persons in accordance with Rule 144A and Regulation S under the Securities Act. These notes and their guarantees will not be registered under the Securities Act or any state securities laws and, therefore, cannot be offered or sold within the United States absent registration or an applicable exemption from such requirements.
Sensata Technologies operates in the automotive, heavy vehicle & off-road, industrial, and aerospace markets, providing a range of sensors and electrical protection components. With a workforce exceeding 21,000 across 16 countries, the company aims to contribute to a more efficient, electrified, and connected world.
This press release serves solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy any securities. The notes offering is made exclusively through a private offering memorandum.
The information in this article is based on a press release statement and includes forward-looking statements subject to risks and uncertainties. These statements are not guarantees of future performance, and actual results could differ materially from those anticipated.
InvestingPro Insights
In light of Sensata Technologies Holding plc's recent announcement regarding the private offering of senior notes, investors and market watchers are keenly observing the company's financial health and growth prospects. According to real-time data from InvestingPro, Sensata Technologies boasts a market capitalization of $6.42 billion as of Q1 2024, reflecting a significant presence in the industrial technology sector.
InvestingPro data indicates a positive revenue growth of 0.27% over the last twelve months as of Q1 2024, with an even more notable quarterly revenue growth of 0.85% in Q1 2024. This suggests a steady upward trend in the company's earnings, aligning with its strategic financial decisions such as the redemption of senior notes. The company's gross profit margin stands at a healthy 30.6%, reinforcing the efficiency of its operations.
An InvestingPro Tip to consider is the company's adjusted P/E ratio, which has improved to 20.04, indicating that the company's earnings could be stabilizing and potentially offering a more attractive valuation for investors. Moreover, the PEG ratio of 0.83 suggests that the company's stock might be undervalued based on its earnings growth, which is an essential metric for investors seeking growth at a reasonable price.
For those interested in dividend returns, Sensata's current dividend yield is 1.13%, with a dividend growth of 9.09% over the last twelve months as of Q1 2024, which could appeal to income-focused investors.
InvestingPro offers a wealth of additional tips for a deeper analysis of Sensata Technologies' financials and performance metrics. To access these insights, consider subscribing to InvestingPro, and don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are currently 15 more InvestingPro Tips available, providing a comprehensive understanding of the company's investment potential.
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