H.B. Fuller Announces Pricing of $300 Million Debt Offering

Rhea-AI Summary

H.B. Fuller Company (NYSE:FUL) has priced a public offering of $300 million in 4.250% Notes due 2028, set to close around October 20, 2020. This offering, priced at 100% of principal, aims to repay a portion of the company's outstanding term loan and fund other corporate needs. Interest will be paid semi-annually. The company is utilizing an effective registration statement filed with the SEC. This move reflects H.B. Fuller's focus on maintaining strong financial health through strategic debt management.

Positive

• Successful pricing of $300 million debt offering.
• Use of proceeds to repay outstanding term loan, enhancing financial stability.

Negative

• Dependence on the execution of the offering to alleviate debt.
• Potential risks related to the completion of the offering and management's discretion in utilizing proceeds.

ST. PAUL, Minn., Oct. 7, 2020 /PRNewswire/ -- H.B. Fuller Company (NYSE:FUL) announced today that it has priced a public offering of $300 million aggregate principal amount of its 4.250% Notes due 2028 (the "Notes") at an issue price of 100% of the principal amount.

The issuance of the Notes is expected to close on or about October 20, 2020, subject to customary closing conditions. The Notes will pay interest on a semi-annual basis.

H.B. Fuller intends to use the net proceeds from the Notes to repay a portion of the outstanding term loan under its secured credit facility and for other general corporate purposes.

The joint book-running managers for the offering are J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and U.S. Bancorp Investments, Inc.

The offering was made pursuant to an effective registration statement on Form S-3 (Registration No. 333-236084) (including a prospectus) filed with the U.S. Securities and Exchange Commission (the "SEC") on January 24, 2020. Prospective investors should read the prospectus forming a part of that registration statement, the prospectus supplement related to the offering, and the other documents that the company has filed with the SEC for more complete information about the company and this offering. These documents are available at no charge by visiting EDGAR on the SEC website at www.sec.gov. Alternately, H.B. Fuller, the underwriters or any dealer participating in this offering will arrange to send you the prospectus if you request it by calling J.P. Morgan Securities LLC toll-free at 1-866-803-9204, Morgan Stanley & Co. LLC toll-free at 1-866-718-1649 or U.S. Bancorp Investments, Inc. toll-free at 1-877-558-2607.

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

About H.B. Fuller Company:
Since 1887, H.B. Fuller has been a leading global adhesives provider focusing on perfecting adhesives, sealants and other specialty chemical products to improve products and lives. With fiscal 2019 net revenue of $2.9 billion, H.B. Fuller's commitment to innovation brings together people, products and processes that answer and solve some of the world's biggest challenges. Our reliable, responsive service creates lasting, rewarding connections with customers in electronics, disposable hygiene, medical, transportation, aerospace, clean energy, packaging, construction, woodworking, general industries and other consumer businesses. And, our promise to our people connects them with opportunities to innovate and thrive.

Safe Harbor for Forward-Looking Statements:

Certain statements in this document may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including those regarding the pending offering of the Notes and the anticipated use of proceeds. These statements are subject to various risks and uncertainties, including but not limited to the following: whether the offering of Notes will be completed, whether the company will be able to satisfy the conditions required to close the sale of the Notes, the fact that the company's management will have broad discretion in the use of the proceeds from any sale of the Notes, and other risks detailed from time to time in the company's filings with the SEC. All forward-looking information represents management's best judgment as of this date based on information currently available that in the future may prove to be inaccurate.

Contacts: 
Director, Assistant Treasurer 
H.B. Fuller 
Maximillian Marcy 
(651) 236-5062

Vice President, Investor Relations 
H.B. Fuller 
Barbara Doyle  
(651) 236-5023

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SOURCE H.B. Fuller Company - IR

FAQ

What is the purpose of H.B. Fuller's $300 million Notes offering?

H.B. Fuller intends to use the proceeds to repay a portion of its outstanding term loan and for other general corporate purposes.

When will H.B. Fuller's Notes offering close?

The offering is expected to close on or about October 20, 2020.

What is the interest rate on H.B. Fuller's Notes due 2028?

The Notes have an interest rate of 4.250% and will pay interest semi-annually.

What are the risks associated with H.B. Fuller's debt offering?

Risks include the uncertainty of successful completion of the offering and management's discretion in using the proceeds.