Clarios International’s $500 Million Senior Secured Notes Offering


Davis Polk advised Clarios International LP, while Latham & Watkins LLP represented the initial purchasers in the offering.

Clarios International LP, formerly the Power Solutions business of Johnson Controls International plc, executed a Rule 144A/Regulation S offering of $500 million aggregate principal amount of its 6.750% senior secured notes due 2025 issued by its wholly owned subsidiaries, Clarios Global LP and Clarios US Finance Company, Inc.

The net proceeds from the offering of the notes will be used for general corporate purposes. Following the closing of the offering of the notes, Clarios has improved its liquidity position to approximately US$1.7 billion.

Clarios is one of the largest manufacturers and distributors of low voltage, advanced automotive battery technologies in the world. It provides one in every three automotive lead-acid batteries globally, servicing cars, heavy-duty trucks, motorcycles, marine and power sports vehicles. Clarios manufactured more than 150 million lead-acid batteries in 2019 and distributed their batteries to customers in over 130 countries, offering best-in-class electrical performance, cycling and functional safety.

The Davis Polk capital markets team advising Clarios included partners Michael Kaplan (Picture) and Derek Dostal and associates Stephen A. Byeff, Claudia Carvajal Lopez and Dylan H. Lojac. The finance team included partners Sartaj Gill and Hilary Dengel and associates Jack Orford and Michael Katz. The tax team included counsel Ethan R. Goldman.

Latham & Watkins LLP represented the initial purchasers in with a corporate team led by New York partners Peter Labonski, Stelios Saffos, Keith Halverstam, and Andrew Baker, with associates Taylor Stevens and Egzon Sulejmani. Advice was also provided on finance matters by New York partner Alfred Xue, with associates Kamal Nesfield, Elisabeth Ong, and Alexa West.

Involved fees earner: Stephen Byeff – Davis Polk & Wardwell; Claudia Carvajal Lopez – Davis Polk & Wardwell; Hilary Dengel – Davis Polk & Wardwell; Derek Dostal – Davis Polk & Wardwell; Sartaj Gill – Davis Polk & Wardwell; Ethan Goldman – Davis Polk & Wardwell; Michael Kaplan – Davis Polk & Wardwell; Michael Katz – Davis Polk & Wardwell; Dylan Lojac – Davis Polk & Wardwell; Jack Orford – Davis Polk & Wardwell;

Law Firms: Davis Polk & Wardwell;

Clients: Clarios International;

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Author: Ambrogio Visconti