Autoliv, Inc., the worldwide leader in automotive safety systems, announced that $1.25 billion of long-term debt securities have been issued and sold as part of the Company’s previously communicated strategy of adjusting its capital structure.

 

The senior notes were issued by Autoliv ASP, Inc., a wholly owned subsidiary of the Company (which acted as guarantor) pursuant to a Note Purchase and Guaranty Agreement dated April 23, 2014. 

 

The notes have an average interest rate of approximately 3.84%, and consist of five series of varying sizes maturing between 2019 and 2029: 

-$208 million of 5-year senior notes with an interest rate of 2.84% 

-$275 million of 7-year senior notes with an interest rate of 3.51% 

-$297 million of 10-year senior notes with an interest rate of 4.09% 

-$285 million of 12-year senior notes with an interest rate of 4.24% 

-$185 million of 15-year senior notes with an interest rate of 4.44% 

 

This debt issuance should support the Company to achieve its long term leverage ratio target of around one time. The proceeds of the guaranteed senior notes will be used to refinance existing debt in light of scheduled maturities and for general corporate purposes. 

 

“We are very pleased with the response to our debt offering which resulted in favorable terms and conditions. This positive response provided an opportunity to better align our long-term debt with our long-term leverage ratio target”, said Mats Wallin, CFO of Autoliv Inc. 

 

Autoliv offered the notes principally to institutional investors in an offering made pursuant to the exemption from registration requirements under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Act”). The offering has not been and will not be registered under the Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Act.