Autoliv, Inc. today announced that the Company expects to issue $1.25 billion of long term debt securities. Autoliv first announced its intention to issue long term debt on February 19, 2014.
The offering is part of the Company’s previously communicated strategy of adjusting its capital structure. The Company currently intends to use the proceeds of the offering to refinance existing debt in light of scheduled maturities and for general corporate purposes.
Autoliv currently anticipates that the senior notes planned to be issued would have an average interest rate of 3.84%, and consist of:
$208 million of 5 year senior notes with an interest rate of 2.84%,
$275 million of 7 year senior notes with an interest rate of 3.51%,
$297 million of 10 year senior notes with an interest rate of 4.09%,
$285 million of 12 year senior notes with an interest rate of 4.24%, and
$185 million of 15 year senior notes with an interest rate of 4.44%.
Autoliv has received initial commitments from the expected purchasers of the notes. However the issuance of the notes is subject to execution of the definitive documentation and funding of the commitments, which is expected to take place during the second quarter of 2014.
Autoliv offered the notes principally to institutional investors in an offering made pursuant to the exemption from registration requirements under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Act”).
The offering has not been and will not be registered under the Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Act. The Company intends this notice to comply with Rule 135c of the Act and, accordingly, this notice does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.