Aptiv upsizes note offering for Versigent spin-off

Aptiv has priced an upsized US$1.6bn private offering of senior notes to fund the spin-off of its Electrical Distribution Systems segment. The offering, increased from the previously announced US$1.5bn, comprises US$800m of 6.125% notes due 2031 and US$800m of 6.375% notes due 2034.

The notes are being issued by Cyprium Corporation and Cyprium Holdings Luxembourg, subsidiaries of Versigent, the newly formed holding company for Aptiv’s Electrical Distribution Systems business. The co-issuers have also secured an US$850m revolving credit facility and a US$500m term loan facility. The offering is expected to close on 18 March 2026.

Upon completion of the spin-off, proceeds from the offering and term loan will fund a dividend to Aptiv, with Versigent retaining US$400m on its balance sheet for general corporate purposes after fees and expenses.

Aptiv announced plans last year to separate its Electrical Distribution Systems segment, which produces wiring harnesses and electrical architecture for vehicles, from its Signal and Power Solutions business. The spin-off will create two independent publicly traded companies.

The notes have been offered to qualified institutional buyers under Rule 144A and to persons outside the United States under Regulation S.

Source: Aptiv