(Bloomberg) -- Amphenol Corp., a maker of equipment including cable, sensors and antennas, sold $1.5 billion of investment-grade bonds Monday to help pay for the company’s acquisition of CommScope Holding Co.’s outdoor wireless networks and distributed antenna systems.
The company issued notes in three parts, according to a person with knowledge of the matter, asking not to be identified discussing private details. The longest portion of the offering, a 30-year bond, will yield 0.95 percentage point more than comparable Treasuries, from initial talk of around 1.25 percentage point.
If the acquisition does not close by July 18, 2025, the 30-year security will be redeemed at 101 cents on the dollar — as will 10-year notes, under a term known as a special mandatory redemption.
Amphenol’s third-quarter sales suggest that the company is riding a wave of demand for artificial intelligence technology alongside growth in defense, commercial aircraft and electrified vehicles, according to Bloomberg Intelligence’s Mustafa Okur.
The $2.1 billion acquisition of CommScope businesses announced earlier this year positions the company to capture revenue from more mobile-network customers and from investments in the next wave of tech infrastructure such as 6G, Okur wrote in July.
A spokesperson for Amphenol didn’t respond to a request for comment.
HSBC, Bank of America, Barclays and BNP Paribas will serve as the bookrunners for the deal. Spokespeople from all four banks declined to comment.
(Updates with finalized details in first and second paragraphs, and BNP Paribas declining comment in seventh paragraph.)
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