Aptiv PLC, Aptiv Corporation and Aptiv Global Financing Limited Enter into Third Amended and Restated Credit Agreement
June 25, 2021 at 04:02 pm EDT
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On June 24, 2021, Aptiv PLC and its wholly-owned subsidiaries, Aptiv Corporation and Aptiv Global Financing Limited, entered into a third amended and restated credit agreement, which restates the credit agreement dated as of March 31, 2011, amended and restated as of May 17, 2011, as of September 14, 2012, as of March 1, 2013, as of August 17, 2016 and as of May 1, 2020 with JPMorgan Chase Bank, N.A., as administrative agent, and the lenders as parties thereto. The third amended and restated credit agreement, among other things, refinances and replaces the existing term loan A and revolver with a new term loan A in an aggregate principal amount of $313 million that matures in five years, and a new five-year revolving credit facility with aggregate commitments of $2.0 billion; utilizes the company’s existing sustainability-linked metrics and commitments, that, if achieved, would reduce the overall cost; removes the prior provisions that increased the leverage ratio maintenance covenant from 3.5:1 to 4.5:1 until July 1, 2021 and the related restrictions on dividends and other payments on equity; and includes a financial maintenance covenant that will be tested quarterly and requires the company to maintain total net leverage (as calculated in accordance with the third amended and restated credit agreement) of less than 3.5:1 (or 4.0:1 for four full fiscal quarters following completion of material acquisitions).
Aptiv PLC specializes in the design, manufacturing and marketing of automotive equipment. Net sales break down by family of products as follows:
- electrical and electronic architecture products (73.8%): connectors, wiring assemblies, harnesses, electrical centers, hybrid high voltage and safety distribution systems;
- electronic and safety systems (26.2%): body controls, reception systems, infotainment and connectivity systems, hybrid vehicle power electronics, passive and active safety electronics, displays and mechatronics.
At the end of 2022, the group has 131 manufacturing plants and 11 technical centers worldwide.
Net sales are distributed geographically as follows: the United States (36%), North America (0.9%), Europe/Middle East/Africa (30.7%), Asia/Pacific (30.2%) and South America (2.2%).