Aerospace technology firm Teledyne Technologies has signed a note purchase agreement to issue US$125m of senior unsecured notes in a private placement on 4 December 2014.
The financing comprises US$30m of 2.61% notes due 2019, and US$95m of 3.09% notes…
Aerospace technology firm Teledyne Technologies has signed a note purchase agreement to issue US$125m of senior unsecured notes in a private placement on 4 December 2014.
The financing comprises US$30m of 2.61% notes due 2019, and US$95m of 3.09% notes due December 2021. The interest rates for the notes were determined on 4 September.
The notes are to be sold under an off-balance sheet arrangement to institutional accredited investors, pursuant to an exemption from registration under the Securities Act of 1933. The notes have not and will not be registered under the Securities Act and therefore may not be offered or sold in the United States until an exemption has been secured.
US Bancorp Investments and Mitsubishi UFJ Securities are acting as placement agents on the transaction.
Teledyne stated that it intends to use proceeds from the private placement for general corporate purposes including acquisitions and share repurchases.
The company has been linked as a potential bidder for satellite modem maker Comtech Telecommunications, which recently hired Citigroup to help it explore strategic alternatives.
At the beginning of September, Teledyne agreed to acquire maritime technology systems specialist Bolt Technology Corporation for about US$171m.
Contemporaneously, the company announced that it had entered into an accelerated share repurchase agreement with a financial institution to repurchase 1.03 million shares of Teledyne’s common stock, valued at around US$100m.
Under the agreement, Teledyne will immediately purchased shares from a financial institution, which in turn will purchase an equivalent number of shares on the open market. The transaction is expected to be completed by the second quarter of 2015.
