TE Connectivity Said to Plan First Bonds in Euros as Costs Drop
(Bloomberg) — TE Connectivity Ltd., a maker of electrical components for cars and industrial machinery, plans to sell its first bonds in euros, according to a person familiar with the matter.
The technology company, which is listed on the New York Stock Exchange, will start meeting investors next week, according to the person, who asked not to be identified without authorization to speak publicly. Schaffhausen, Switzerland-based TE Connectivity will sell the bonds through its Tyco Electronics unit.
TE Connectivity is planning its debut sale in euros as borrowing costs for investment-grade companies in the region dropped to record lows. Average yields on euro bonds dropped to 0.98 percent, two percentage points less than yields on comparative dollar debt, according to Bank of America Merrill Lynch bond indexes.
“The company is looking to take advantage of a lower cost of funding in Europe’s bond market,” said Joel Levington, a New York-based credit analyst at Bloomberg Intelligence.
Jane Crawford, a TE Connectivity spokeswoman didn’t immediately respond to a phone call and e-mail seeking comment on the planned sale.
TE Connectivity got 39 percent of revenue from the U.S. last year compared with 9.8 percent in Europe, Middle East and Africa, according to data compiled by Bloomberg. The company has $3.4 billion of bonds denominated in U.S. dollars, the data show.
–With assistance from Levent Kucukreisoglu in London.
To contact the reporter on this story: Katie Linsell in Madrid at klinsell@bloomberg.net To contact the editors responsible for this story: Shelley Smith at ssmith118@bloomberg.net Chapin Wright
