Axalta Prices Upsized Notes Offering

Rhea-AI Summary

Axalta Coating Systems Ltd. (NYSE: AXTA) announced the pricing of an upsized offering of $700 million in 3.375% Senior Notes due 2029. The offering was increased by $100 million from the original amount of $600 million. Proceeds will be used to redeem existing $500 million of 4.875% Senior Notes due 2024 and €335 million of 4.250% Senior Notes due 2024, along with associated costs. The closing is expected on November 24, 2020. The offering is regulated under Rule 144A and Regulation S, and securities will not be registered under the Securities Act.

Positive

• Increased offering size by $100 million to $700 million.
• Proceeds will be used to redeem higher interest existing notes, potentially reducing overall interest expenses.

Negative

• Dependence on external market conditions for successful completion of the offering.
• Ongoing uncertainties related to COVID-19 may impact business operations.

PHILADELPHIA, Nov. 9, 2020 /PRNewswire/ -- Axalta Coating Systems Ltd. (NYSE: AXTA) (the "Company") today announced that its indirect, wholly owned subsidiary, Axalta Coating Systems, LLC (the "Issuer"), priced its offering of $700.0 million in aggregate principal amount of 3.375% Senior Notes due 2029 (the "Notes"). The size of the offering was increased by $100.0 million from the previously announced offering size of $600.0 million. The Notes were offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and outside the United States in compliance with Regulation S under the Securities Act.

The Notes are expected to be fully and unconditionally guaranteed by the Company and each of the Company's existing restricted subsidiaries that guarantee its credit facilities (other than the Issuer), subject to certain exceptions. The Issuer expects to use the net proceeds of this offering, together with cash on hand, to redeem the $500.0 million aggregate principal amount of its 4.875% Senior Notes due 2024 and €335.0 million aggregate principal amount of its 4.250% Senior Notes due 2024 (collectively, the "Existing Notes") and to pay related transaction costs and expenses. The Notes offering is expected to close on November 24, 2020, subject to customary conditions.

The Notes and related guarantees will not be registered under the Securities Act, or any state securities laws, and may not be offered or sold in the United States absent registration, except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws.

This press release shall not constitute an offer to sell nor a solicitation of an offer to buy any security, nor shall there be any sale of these securities in any state or 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 jurisdiction.

About Axalta Coating Systems

The Company is a global leader in the coatings industry, providing customers with innovative, colorful, beautiful and sustainable coatings solutions. From light vehicles, commercial vehicles and refinish applications to electric motors, building facades and other industrial applications, our coatings are designed to prevent corrosion, increase productivity and enhance durability. With more than 150 years of experience in the coatings industry, the global team at the Company continues to find ways to serve our more than 100,000 customers in over 130 countries better every day with the finest coatings, application systems and technology.

Cautionary Statement Concerning Forward-Looking Statements 

This release may contain certain forward-looking statements regarding the Company and its subsidiaries, the offering of the Notes and the redemption of the Existing Notes. All of these statements are based on management's expectations as well as estimates and assumptions prepared by management that, although they believe to be reasonable, are inherently uncertain. These statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of the Company's control, as well as the effects of COVID-19, that may cause its business, industry, strategy, financing activities or actual results to differ materially. The extent and duration of COVID-19 on our business and operations is uncertain. Factors that will influence the impact on our business and operations include the duration and extent of COVID-19, the extent of imposed or recommended containment and mitigation measures, and the general economic consequences of COVID-19. More information on potential factors that could affect the Company's actual results is available in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections within the Company's most recent annual report on Form 10-K, and in other documents that the Company has filed with, or furnished to, the U.S. Securities and Exchange Commission, including the Company's quarterly report on Form 10-Q for the quarter ended September 30, 2020. The Company undertakes no obligation to update or revise any of the forward-looking statements contained herein, whether as a result of new information, future events or otherwise.

Contact
Christopher Mecray
D +1 215 255 7970
Christopher.Mecray@axalta.com

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SOURCE Axalta Coating Systems Ltd.

FAQ

What are the details of Axalta's recent senior notes offering?

Axalta Coating Systems priced $700 million in 3.375% Senior Notes due 2029, increasing from the initial $600 million.

When is the expected closing date for Axalta's notes offering?

The offering is expected to close on November 24, 2020.

How will the proceeds from Axalta's notes offering be utilized?

The proceeds will be used to redeem $500 million of 4.875% Senior Notes due 2024 and €335 million of 4.250% Senior Notes due 2024.

What are the implications of Axalta's notes offering for investors?

Redeeming higher interest notes could reduce Axalta's interest expenses, potentially benefiting investors.

What are the risks associated with Axalta's notes offering?

The offering's success is subject to market conditions and uncertainties related to COVID-19.