Atkore Inc. Announces Pricing of Notes Offering

Rhea-AI Summary

Atkore Inc. (NYSE: ATKR) has priced its $400 million offering of 4.25% Senior Notes due 2031. The Company plans to use the proceeds to reduce its term loan obligations. The Notes will be sold at par and will be unsecured obligations guaranteed by current and future subsidiaries. The sale is slated for May 26, 2021, pending standard closing conditions. The offering will be limited to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S, thus not registered under the Securities Act.

Positive

• Issuance of $400 million in Senior Notes strengthens liquidity.
• Proceeds aimed at repaying term loan enhance financial stability.

Negative

• Senior Notes are unsecured, potentially increasing financial risk.
• Dependence on market acceptance for successful offering could pose challenges.

Atkore Inc. (the “Company”) (NYSE: ATKR) today announced that it has priced its previously announced notes offering and has agreed to issue and sell $400 million aggregate principal amount of 4.25% Senior Notes due 2031 (the “Notes”). The Notes will be sold to investors at par.

The Company intends to use the net proceeds of the Notes offering to repay a portion of the amounts outstanding under its term loan facility (including accrued and unpaid interest with respect to such amounts). The Notes will be the Company’s senior unsecured obligations and will be guaranteed by each of the Company’s existing and future subsidiaries that are borrowers under or that guarantee its asset-based revolving credit facility and term loan facility. The closing of the sale of the Notes is scheduled for May 26, 2021, subject to customary closing conditions.

The Notes have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”) or any state securities laws, and may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from such registration requirements. Accordingly, the Notes will be offered and sold in the United States only to qualified institutional buyers in reliance on Rule 144A under the Securities Act and to non-U.S. persons in offshore transactions outside the United States in accordance with Regulation S under the Securities Act.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the Notes in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210518006075/en/

FAQ

What amount has Atkore priced its Senior Notes offering at?

Atkore has priced its Senior Notes offering at $400 million.

What is the interest rate for Atkore's Senior Notes due 2031?

The interest rate for Atkore's Senior Notes is 4.25%.

When is the closing date for Atkore's Senior Notes offering?

The closing date for Atkore's Senior Notes offering is scheduled for May 26, 2021.

Who can purchase Atkore's Senior Notes?

The Senior Notes can be purchased by qualified institutional buyers and non-U.S. persons.

What will Atkore do with the proceeds from the Senior Notes?

Atkore intends to use the proceeds from the Senior Notes to repay a portion of its term loan facility.