Forum Energy Technologies Announces $100 Million Bond Issuance
Forum Energy Technologies (NYSE: FET) has announced a private offering of $100 million in 5-year senior secured bonds. The company plans to use the proceeds, along with cash on hand, to redeem all outstanding 9.000% Convertible Senior Secured Notes due 2025 and repay borrowings from the seller term loan related to the Variperm Energy Services acquisition.
The offering will be made only to non-U.S. persons outside the United States under Regulation S of the Securities Act. The bonds have not been registered under the Securities Act or state securities laws, limiting their sale in the U.S. This announcement does not constitute a redemption notice for the 2025 Notes or a repayment notice for the Seller Term Loan.
Forum Energy Technologies (NYSE: FET) ha annunciato un emissione privata di 100 milioni di dollari in obbligazioni senior garantite a 5 anni. L'azienda intende utilizzare i proventi, insieme alla liquidità a disposizione, per riscattare tutte le Note Senior Garantite Convertibili del 9.000% in scadenza nel 2025 e rimborso dei prestiti dal seller term loan relativi all'acquisizione di Variperm Energy Services.
L'offerta sarà effettuata solo a persone non statunitensi al di fuori degli Stati Uniti ai sensi della Regolamentazione S del Securities Act. Le obbligazioni non sono state registrate ai sensi del Securities Act o delle leggi statali sui titoli, limitando la loro vendita negli Stati Uniti. Questo annuncio non costituisce un avviso di riscatto per le Note 2025 o un avviso di rimborso per il Seller Term Loan.
Forum Energy Technologies (NYSE: FET) ha anunciado una oferta privada de 100 millones de dólares en bonos senior garantizados a 5 años. La compañía planea utilizar los ingresos, junto con efectivo disponible, para redimir todas las Notas Senior Garantizadas Convertibles a 9.000% con vencimiento en 2025 y pagar préstamos del seller term loan relacionados con la adquisición de Variperm Energy Services.
La oferta se realizará solo a personas no estadounidenses fuera de los Estados Unidos bajo la Regulación S de la Ley de Valores. Los bonos no han sido registrados bajo la Ley de Valores o las leyes estatales de valores, lo que limita su venta en los EE.UU. Este anuncio no constituye un aviso de redención para las Notas 2025 o un aviso de pago para el Seller Term Loan.
Forum Energy Technologies (NYSE: FET)는 5년 만기 선순위 담보 채권 1억 달러의 사모 발행을 발표했습니다. 이 회사는 이러한 수익과 보유 현금을 사용하여 2025년 만기 9.000% 전환 선순위 담보 노트 전량을 상환하고 Variperm Energy Services 인수에 관련된 매도자 대출금을 상환할 계획입니다.
이번 발행은 증권법 제정에 따라 미국 외의 비미국인에게만 진행됩니다. 채권은 증권법이나 주 증권 법률에 따라 등록되지 않아 미국 내 판매가 제한됩니다. 이번 발표는 2025년 노트의 상환 통지나 매도자 대출의 상환 통지를 구성하지 않습니다.
Forum Energy Technologies (NYSE: FET) a annoncé une offre privée de 100 millions de dollars en obligations senior sécurisées à 5 ans. La société prévoit d'utiliser les produits, ainsi que des liquidités, pour racheter toutes les Notes Senior Garanties Convertibles à 9.000 % arrivant à échéance en 2025 et rembourser les emprunts du prêt vendeur liés à l'acquisition de Variperm Energy Services.
L'offre sera uniquement faite à des personnes non américaines en dehors des États-Unis conformément à la Réglementation S de la loi sur les valeurs mobilières. Les obligations n'ont pas été enregistrées en vertu de la loi sur les valeurs mobilières ou des lois nationales sur les valeurs mobilières, ce qui limite leur vente aux États-Unis. Cette annonce ne constitue pas un avis de rachat pour les Notes 2025 ni un avis de remboursement pour le prêt vendeur.
Forum Energy Technologies (NYSE: FET) hat eine private Platzierung von 100 Millionen US-Dollar in 5-jährigen, besicherten Anleihen angekündigt. Das Unternehmen plant, die Erlöse zusammen mit vorhandenen Zahlungsmitteln zu verwenden, um alle ausstehenden 9.000% wandelbaren, besicherten Schuldscheine, die 2025 fällig werden, und um Darlehen aus dem Verkäuferdarlehen im Zusammenhang mit der Übernahme von Variperm Energy Services zurückzuzahlen.
Das Angebot wird nur an Nicht-US-Personen außerhalb der Vereinigten Staaten gemäß der Regulierung S des Wertpapiergesetzes gerichtet. Die Anleihen wurden nicht gemäß dem Wertpapiergesetz oder den staatlichen Wertpapiergesetzen registriert, was deren Verkauf in den USA einschränkt. Diese Ankündigung stellt weder eine Rückzahlungsmitteilung für die 2025er Notes noch eine Rückzahlungsmitteilung für das Verkäuferdarlehen dar.
- Refinancing $100 million in debt with new 5-year senior secured bonds
- Potential reduction in interest expenses by redeeming 9.000% Convertible Senior Secured Notes
- Increasing long-term debt by $100 million
Insights
This $100 million bond issuance is a significant financial move for Forum Energy Technologies. The company is effectively restructuring its debt by using the proceeds to redeem outstanding convertible notes and repay a seller term loan. This refinancing could potentially lower FET's interest expenses and extend its debt maturity profile.
The decision to issue bonds to non-U.S. persons through Regulation S suggests FET is tapping into international capital markets, possibly to diversify its investor base or take advantage of favorable terms. However, investors should note that this offering is not registered under the Securities Act, which limits its tradability in U.S. markets.
For a company with a market cap of
Forum Energy Technologies' bond issuance reflects broader trends in the energy sector. As a company serving oil, gas and renewable energy industries, FET's financial maneuvers indicate ongoing challenges and opportunities in these markets.
The 5-year term of the new bonds suggests FET anticipates a medium-term recovery or stability in its core markets. This could be seen as a vote of confidence in the energy sector's outlook. However, the need for refinancing also hints at potential cash flow pressures or a strategic repositioning.
Investors should consider how this debt restructuring might impact FET's ability to invest in growth areas, particularly in renewable energy solutions. The company's focus on improving safety, efficiency and environmental impact aligns with industry trends, but executing this strategy while managing a significant debt load will be important for FET's future performance.
The securities to be offered have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws, and unless so registered, the securities may not be offered or sold in
This announcement does not constitute a notice of redemption with respect to the 2025 Notes or a notice of repayment with respect to the Seller Term Loan.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any of these securities, nor shall there be any sale of these securities in any state in which such offer, solicitation, or sale would be unlawful. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.
FET (Forum Energy Technologies) is a global manufacturing company, serving the oil, natural gas, industrial and renewable energy industries. With headquarters located in
Cautionary Statement Regarding Forward-Looking Statements
Statements contained in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include words or phrases such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “likely,” “plan,” “project,” “could,” “may,” “might,” “should,” “will” and similar words and specifically include statements regarding the Offering and the use of proceeds therefrom. The forward-looking statements contained in this press release are subject to numerous risks, uncertainties and assumptions that may cause actual results to vary materially from those indicated. For additional information regarding known material risks, you should also carefully read and consider FET’s most recent annual report on Form 10-K and quarterly reports on Form 10-Q, which are available on the Securities and Exchange Commission’s website at www.sec.gov. Each forward-looking statement speaks only as of the date of the particular statement, and FET undertakes no obligation to update or revise any forward-looking statements, except as required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241014543399/en/
Rob Kukla
Director of Investor Relations
281.994.3763
rob.kukla@f-e-t.com
Source: Forum Energy Technologies, Inc.
FAQ
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