Debt |
9 Months Ended |
|---|---|
Jun. 26, 2026 | |
| Debt | |
| Debt | 7. Debt During the nine months ended June 26, 2026, Tyco Electronics Group S.A. (“TEGSA”), our wholly-owned subsidiary, issued $200 million aggregate principal amount of 4.50% senior notes due in February 2031 and $550 million aggregate principal amount of 4.875% senior notes due in February 2036. The February 2031 senior notes represent a further issuance of TEGSA’s outstanding $450 million aggregate principal amount of 4.50% senior notes which were issued in fiscal 2025 and bring the total aggregate principal amount of the 4.50% senior notes due in February 2031 to $650 million. The new notes are TEGSA’s unsecured senior obligations and rank equally in right of payment with all existing and any future senior indebtedness of TEGSA and senior to any subordinated indebtedness that TEGSA may incur. During the nine months ended June 26, 2026, TEGSA repaid, at maturity, $500 million of 4.50% senior notes and $350 million of 3.70% senior notes, both due in February 2026. At June 26, 2026, TEGSA had $100 million of commercial paper outstanding at a weighted-average interest rate of 3.95%. TEGSA had no commercial paper outstanding at September 26, 2025. TEGSA entered into a new five-year unsecured senior revolving credit facility (“Credit Facility”) in February 2026 with aggregate commitments of $3.0 billion, which refinanced and replaced in full TEGSA’s existing $1.5 billion five-year unsecured senior revolving credit facility (the “Replaced Credit Facility”). The Credit Facility matures in February 2031 and contains provisions that allow for incremental commitments of up to $1.0 billion, subject to terms and conditions in the Credit Facility. TEGSA had no borrowings under the Credit Facility at June 26, 2026 or the Credit Facility at September 26, 2025. Borrowings under the Credit Facility bear interest at a rate per annum equal to, at the option of TEGSA, (1) with respect to borrowings in U.S. dollars, (a) (as defined in the Credit Facility) or (b) an alternate base rate equal to the highest of (i) , N.A.’s base rate, (ii) the rate plus of 1%, (iii) plus 1%, and (iv) 1%, (2) with respect to borrowings in euro, the , (3) with respect to borrowings in sterling, the , and (4) with respect to borrowings in yen, the , plus, in each case, an applicable margin based upon the senior, unsecured, long-term debt rating of TEGSA. TEGSA is required to pay an annual facility fee. Based on the applicable credit ratings of TEGSA, this fee ranges from 5.0 to 12.5 basis points of the lenders’ commitments under the Credit Facility. Payment obligations under TEGSA’s senior notes, commercial paper, and Credit Facility are fully and unconditionally guaranteed on an unsecured basis by TEGSA’s parent, TE Connectivity Switzerland Ltd., and its parent, TE Connectivity plc. The fair value of our debt, based on indicative valuations, was approximately $5,602 million and $5,725 million at June 26, 2026 and September 26, 2025, respectively. |