TE Connectivity plc 8-K

What Happened
TE Connectivity plc announced it entered into a Five-Year Senior Credit Agreement on February 13, 2026. The agreement names Tyco Electronics Group S.A. (TEGSA) as borrower, TE Connectivity Switzerland Ltd. as intermediate guarantor and TE Connectivity plc as parent guarantor, with Bank of America, N.A. as administrative agent. The new facility provides $3.0 billion of revolving commitments to back borrowings under the company’s commercial paper program and replaces TEGSA’s prior $1.5 billion five‑year unsecured revolving facility, which was terminated effective with the new agreement.

Key Details

• Agreement date: February 13, 2026; 8-K filed February 17, 2026.
• Size: $3,000,000,000 initial revolving commitments; TEGSA may increase commitments by up to $1,000,000,000.
• Maturity/Extensions: Matures February 13, 2031, with TEGSA option to extend up to two one‑year periods.
• Pricing: U.S. dollar borrowings priced at Term SOFR or an alternate base rate; Euro, Sterling and Yen borrowings tied to respective short‑term reference rates, plus an applicable margin based on TEGSA’s long‑term unsecured debt rating.
• Fees: Annual facility fee ranges from 5.0 to 12.5 basis points of lenders’ commitments based on TEGSA’s ratings.
• Financial covenant: If Consolidated Total Debt/Consolidated EBITDA (last four quarters) exceeds 3.75:1.0 (or 4.25:1.0 if a Qualified Acquisition has occurred), an Event of Default is triggered.
• The prior $1.5B facility (scheduled to mature April 24, 2029) was terminated with no early termination penalties.

Why It Matters
This new $3.0B facility increases the company’s committed liquidity backing its commercial paper program (up from $1.5B), providing greater short‑term funding flexibility. The availability to upsize the facility by up to $1.0B and to extend maturities offers additional optionality. Investors should note the leverage covenant (Total Debt/EBITDA) that can trigger default if leverage rises above specified thresholds, and that borrowing costs will float with market rates and the company’s credit rating.