NEW YORK (Bloomberg) -- ZF Friedrichshafen AG raised 2.25 billion euros ($2.4 billion) with the company’s first bond sale in its 100-year history to help pay for its acquisition of U.S. automotive safety components supplier TRW Automotive Holdings Corp.
The German maker of auto parts sold 1.15 billion euros of high-yield notes maturing in April 2019, according to data compiled by Bloomberg. It also issued 1.1 billion euros debt due April 2023.
The deal is expected to close by mid-year following regulatory approvals.
ZF Friedrichshafen is seeking to part-fund last year’s $12.4 billion purchase of TRW in the bond market as euro-area borrowing costs fall.
The company is rated Ba2 by Moody’s Investors Service, two levels below investment grade, and an equivalent BB by Standard & Poor’s.
Investors are taking on more risk as the safest euro-area government bonds offer negative rates amid unprecedented central bank stimulus.
ZF Friedrichshafen was formed in 1915 from the Zeppelin Foundation by Count Ferdinand Graf Von Zeppelin, builder of the famous airships that bore his name, according to the company’s website.