Forum Energy Technologies Announces Closing of $100 Million Senior Secured Bond Issuance
Forum Energy Technologies (NYSE: FET) has successfully closed a $100 million senior secured bond offering with a 10.5% interest rate, maturing in November 2029. The bonds were issued at par, and the proceeds, along with cash on hand, were used to repay borrowings from the Variperm Energy Services acquisition and to fully redeem outstanding 9.000% Convertible Senior Secured Notes due 2025. CEO Neal Lux highlighted that this offering strengthens the company's balance sheet and provides flexibility for strategic investments, including M&A and share repurchases, while maintaining focus on reducing net debt and conservative leverage.
Forum Energy Technologies (NYSE: FET) ha chiuso con successo un emissione di obbligazioni senior garantite da 100 milioni di dollari con un tasso d'interesse del 10,5%, in scadenza a novembre 2029. Le obbligazioni sono state emesse al valore nominale e i proventi, insieme alla liquidità disponibile, sono stati utilizzati per rimborsare i prestiti legati all'acquisizione di Variperm Energy Services e per rimborsare completamente le note senior convertibili garantite al 9.000% in scadenza nel 2025. Il CEO Neal Lux ha sottolineato che questa emissione rafforza il bilancio dell'azienda e fornisce flessibilità per investimenti strategici, inclusi M&A e riacquisti di azioni, mantenendo al contempo l'attenzione sulla riduzione del debito netto e su un leverage conservativo.
Forum Energy Technologies (NYSE: FET) ha cerrado con éxito una oferta de bonos garantizados senior de 100 millones de dólares con una tasa de interés del 10,5%, con vencimiento en noviembre de 2029. Los bonos se emitieron a la par y los ingresos, junto con la liquidez disponible, se utilizaron para pagar los préstamos de la adquisición de Variperm Energy Services y para redimir completamente las Notas Senior Convertibles Garantizadas al 9.000% que vencen en 2025. El CEO Neal Lux destacó que esta oferta refuerza el balance de la empresa y proporciona flexibilidad para inversiones estratégicas, incluidas fusiones y adquisiciones y recompras de acciones, mientras se mantiene el foco en reducir la deuda neta y mantener un apalancamiento conservador.
포럼 에너지 테크놀로지스 (NYSE: FET)는 1억 달러 규모의 고정 담보 노출 채권 발행을 성공적으로 마감하였으며, 이자율은 10.5%로 2029년 11월 만기입니다. 채권은 액면가로 발행되었으며, 수익금과 보유 현금을 통해 Variperm Energy Services 인수에 대한 차입금을 상환하고 2025년 만기 9.000% 전환 선순위 보증부 노트를 전액 상환하는 데 사용되었습니다. CEO Neal Lux는 이번 발행이 회사의 재무 상태를 강화하고, M&A 및 자사주 매입 등 전략적 투자에 대한 유연성을 제공하며, 동시에 순부채 감소와 보수적 레버리지 유지를 강조한다고 밝혔습니다.
Forum Energy Technologies (NYSE: FET) a réussi à clôturer une offre d'obligations senior garanties de 100 millions de dollars avec un taux d'intérêt de 10,5 %, arrivant à échéance en novembre 2029. Les obligations ont été émises à par et les produits, ainsi que la liquidité disponible, ont été utilisés pour rembourser les prêts liés à l'acquisition de Variperm Energy Services et pour racheter entièrement les Bons de Souscription Senior Convertibles garantis à 9,000 % d'échéance 2025. Le PDG Neal Lux a souligné que cette émission renforce le bilan de l'entreprise et offre une flexibilité pour des investissements stratégiques, y compris des fusions et acquisitions et des rachats d'actions, tout en restant concentré sur la réduction de la dette nette et un effet de levier conservateur.
Forum Energy Technologies (NYSE: FET) hat erfolgreich ein angebotene gesicherte Senior-Anleihe über 100 Millionen Dollar mit einem Zinssatz von 10,5%, fällig im November 2029, abgeschlossen. Die Anleihen wurden zu pari ausgegeben und die Erlöse, zusammen mit vorhandenen Barmitteln, wurden verwendet, um Darlehen aus der Akquisition von Variperm Energy Services zurückzuzahlen und die ausstehenden 9,000% wandelbaren Senior-gesicherten Notes, die 2025 fällig sind, vollständig einzulösen. CEO Neal Lux betonte, dass dieses Angebot die Bilanz des Unternehmens stärkt und Flexibilität für strategische Investitionen, einschließlich M&A und Aktienrückkäufen, bietet, während gleichzeitig der Fokus auf der Reduzierung von Nettoverbindlichkeiten und einem konservativen Leverage liegt.
- Successful completion of $100M bond offering strengthening balance sheet
- Strategic debt refinancing with extended maturity to 2029
- Enhanced financial flexibility for M&A and share repurchases
- Higher interest rate on new bonds (10.5%) compared to previous notes (9.0%)
- Increased debt service costs due to higher interest rate
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The refinancing strengthens FET's balance sheet by consolidating debt and extending maturities, though at a higher cost. The company's focus on reducing net debt while maintaining flexibility for M&A and share repurchases suggests a balanced approach to capital allocation. For a company with a
Neal Lux, President and Chief Executive Officer, remarked, “I am pleased with the team’s hard work to deliver on the strategic plan we outlined earlier this year. The Offering not only fortifies our balance sheet, but also provides flexibility for strategic investments in the form of traditional M&A and share repurchases. We will, however, continue to remain focused on reducing net debt and maintaining conservative net leverage.“
ABG Sundal Collier acted as sole manager and bookrunner in the Offering. FET was represented in the transaction by Gibson, Dunn & Crutcher LLP and Schjodt as legal counsel. ABG was represented by Wikborg Rein Advokatfirma AS, as legal counsel.
FET 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 of 1933, as amended, 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/20241111722781/en/
Rob Kukla
Director of Investor Relations
281.994.3763
rob.kukla@f-e-t.com
Source: Forum Energy Technologies, Inc.
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