The term loan facility bears interest at LIBOR plus 175 basis points in the case of
borrowings denominated in U.S. dollars and EURIBOR plus 200 basis points in the case of borrowings denominated in Euros. The interest payments on the Senior Secured Credit Facility are due quarterly.
Pursuant to the Senior Secured Credit Facility, Sensata
Technologies is required to pay to its lender on a quarterly basis a commitment fee on the undrawn line of credit. For the years ended December 31, 2009, 2008 and 2007, the Company paid $614, $668 and $601, respectively, to its lender.
During 2009, Sensata Technologies borrowed and
repaid amounts under its revolving credit facility. As of December 31, 2009 and 2008, Sensata Technologies had $0 and $25.0 million, respectively, outstanding under its revolving credit facility.
The outstanding senior notes (the Senior Notes)
were issued under an indenture dated as of April 27, 2006 (inception) among the Company, as issuer, The Bank of New York, as trustee, and the Guarantors (the Senior Notes Indenture). The Senior Notes mature on May 1, 2014.
Interest is payable semi-annually (at 8% per annum) in cash to holders of Senior Notes of record at the close of business on April 15 or October 15 immediately preceding the interest payment date, on May 1 and November 1 of
each year. Interest is paid on the basis of a 360-day year consisting of twelve 30-day months.
The Senior Notes were issued in an aggregate principal amount of $450.0 million. Proceeds from the issuance of the Senior Notes were used to fund a portion of the 2006 Acquisition of the S&C business
The Senior Notes Indenture limits, under
certain circumstances, the borrowers ability and the ability of its Restricted Subsidiaries to: incur additional indebtedness, create liens, pay dividends and make other distributions in respect of the capital stock of Sensata Technologies,
redeem the capital stock of Sensata Technologies, make certain investments or certain restricted payments, sell certain kinds of assets, enter into certain types of transactions with affiliates and effect mergers or consolidations. These covenants
are subject to a number of important exceptions and qualifications.
As per the terms of the Senior Notes, Restricted Subsidiaries are also subject to restrictive covenants. As of December 31, 2009 and December 31, 2008, all of the subsidiaries of Sensata
Technologies were Restricted Subsidiaries. Under certain circumstances, the Company will be permitted to designate subsidiaries as Unrestricted Subsidiaries. Unrestricted Subsidiaries will not be subject to the restrictive
covenants of the Senior Notes Indenture. Unrestricted Subsidiaries will not guarantee any of the Senior Notes.
Additional securities may be issued under the Senior Notes Indenture in one or more series from time to time, subject to certain
The Senior Notes are general
unsecured obligations of the borrowers and are effectively subordinated to all secured indebtedness of the Company to the extent of the value of the assets securing such secured indebtedness and to all indebtedness and other liabilities (including
trade payables) of Sensata Technologies subsidiaries that are not Guarantors.
The guarantees of each Guarantor with respect to the Senior Notes are general unsecured obligations of such Guarantor.
Sensata Technologies may redeem some or all of the Senior Notes on or after May 1, 2010 at the redemption
prices listed below, plus accrued interest.
For the year ending December 31,
2012 and thereafter