Hexcel Prices $300 Million of 5.875% Senior Notes Due 2035
Hexcel (NYSE: HXL) has priced an offering of $300 million of unsecured 5.875% Senior Notes due 2035 at 99.985% of their face value. The company expects to receive approximately $298 million in net proceeds, which will be used to redeem its existing unsecured 4.700% Senior Notes due 2025. The offering is expected to close on February 26, 2025, subject to customary closing conditions.
BofA Securities, Goldman Sachs & Co., and J.P. Morgan Securities are serving as joint book-running managers for the offering. The notes will be offered through a prospectus supplement and prospectus filed with the Securities and Exchange Commission.
Hexcel (NYSE: HXL) ha fissato il prezzo per un'offerta di 300 milioni di dollari di Obbligazioni Senior non garantite al 5,875% con scadenza nel 2035 a 99,985% del loro valore nominale. L'azienda prevede di ricevere circa 298 milioni di dollari di proventi netti, che saranno utilizzati per il rimborso delle attuali Obbligazioni Senior non garantite al 4,700% in scadenza nel 2025. Si prevede che l'offerta si chiuda il 26 febbraio 2025, soggetta a condizioni di chiusura usuali.
BofA Securities, Goldman Sachs & Co. e J.P. Morgan Securities stanno fungendo da gestori di libro congiunti per l'offerta. Le obbligazioni saranno offerte tramite un supplemento di prospetto e prospetto depositati presso la Securities and Exchange Commission.
Hexcel (NYSE: HXL) ha fijado el precio de una oferta de 300 millones de dólares de Notas Senior no garantizadas al 5,875% con vencimiento en 2035 al 99,985% de su valor nominal. La compañía espera recibir aproximadamente 298 millones de dólares en ingresos netos, que se utilizarán para canjear sus Notas Senior no garantizadas existentes al 4,700% con vencimiento en 2025. Se espera que la oferta se cierre el 26 de febrero de 2025, sujeta a las condiciones de cierre habituales.
BofA Securities, Goldman Sachs & Co. y J.P. Morgan Securities están actuando como los gestores conjuntos de la oferta. Las notas se ofrecerán a través de un suplemento de prospecto y un prospecto presentado a la Securities and Exchange Commission.
Hexcel (NYSE: HXL)는 2035년 만기 5.875% 비보장 고정 수익 증권 3억 달러의 가격을 액면가의 99.985%로 책정했습니다. 회사는 2억 9,800만 달러 가량의 순수익을 받을 것으로 예상하며, 이는 2025년 만기 기존 비보장 4.700% 고정 수익 증권의 상환에 사용될 것입니다. 이 오퍼링은 2025년 2월 26일에 종료될 예정이며, 일반적인 종료 조건에 따라 진행됩니다.
BofA Securities, Goldman Sachs & Co. 및 J.P. Morgan Securities가 공동 북러닝 관리자 역할을 수행하고 있습니다. 이 증권은 증권 거래 위원회에 제출된 보충서 및 청약서를 통해 제공될 것입니다.
Hexcel (NYSE: HXL) a fixé le prix d'une offre de 300 millions de dollars d'Obligations Senior non garanties à 5,875% arrivant à échéance en 2035, à 99,985% de leur valeur nominale. L'entreprise s'attend à recevoir environ 298 millions de dollars de produits nets, qui seront utilisés pour rembourser ses Obligations Senior non garanties existantes à 4,700% arrivant à échéance en 2025. L'offre devrait se clôturer le 26 février 2025, sous réserve des conditions de clôture habituelles.
BofA Securities, Goldman Sachs & Co. et J.P. Morgan Securities agissent en tant que co-managers de l'offre. Les obligations seront proposées via un supplément de prospectus et un prospectus déposé auprès de la Securities and Exchange Commission.
Hexcel (NYSE: HXL) hat ein Angebot von 300 Millionen Dollar für nicht gesicherte 5,875% Senior Notes mit Fälligkeit 2035 zu 99,985% ihres Nennwerts festgelegt. Das Unternehmen erwartet, dass es etwa 298 Millionen Dollar an Nettoeinnahmen erhalten wird, die zur Rückzahlung der bestehenden nicht gesicherten 4,700% Senior Notes mit Fälligkeit 2025 verwendet werden. Das Angebot wird voraussichtlich am 26. Februar 2025 abgeschlossen, vorbehaltlich der üblichen Abschlussbedingungen.
BofA Securities, Goldman Sachs & Co. und J.P. Morgan Securities fungieren als Joint Book-Running Managers für das Angebot. Die Anleihen werden über ein ergänzendes Verkaufsprospekt und ein Verkaufsprospekt, das bei der Securities and Exchange Commission eingereicht wurde, angeboten.
- Successful pricing of $300M senior notes offering
- Strategic refinancing of existing debt with longer maturity (2035 vs 2025)
- Higher interest rate on new notes (5.875% vs 4.700%) will increase interest expenses
- Slight discount on notes pricing (99.985%) results in ~$2M less proceeds than face value
Insights
Hexcel's $300 million senior notes offering represents a strategic debt restructuring that warrants careful analysis. The new 5.875% notes due 2035, priced nearly at par (99.985%), will replace existing 4.700% notes due 2025, increasing annual interest expenses by approximately
The transaction's timing and execution are particularly noteworthy. By securing this refinancing now, Hexcel eliminates near-term refinancing risk and locks in rates before potential market volatility. The tight pricing spread suggests strong investor confidence in Hexcel's credit profile, particularly important given the aerospace industry's capital-intensive nature and long business cycles.
The extended maturity profile enhances financial flexibility during a important period for aerospace manufacturers. With commercial aviation recovery continuing and defense spending trending upward globally, this debt structure aligns with industry capital expenditure cycles. The premium paid for longer-term certainty appears justified given the company's position in advanced composites and anticipated growth in sustainable aviation technologies.
The involvement of top-tier underwriters (BofA Securities, Goldman Sachs, and J.P. Morgan) and the successful pricing indicate robust institutional interest, though investors should monitor the impact on Hexcel's weighted average cost of capital and future free cash flow generation capacity.
The net proceeds from this offering are estimated to be approximately
The offering is expected to close on February 26, 2025, subject to customary closing conditions. BofA Securities, Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are acting as joint book-running managers for the offering.
This offering of notes may be made only by means of a prospectus supplement and a prospectus. A copy of the prospectus supplement and the prospectus relating to the offering will be filed with the Securities and Exchange Commission and, when available, can be obtained from: (i) BofA Securities, Inc., NC1-022-02-25, 201 North Tryon Street,
This communication shall not constitute an offer to sell or the solicitation of an offer to buy, 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 thereof under the securities laws of any such state or jurisdiction.
Disclaimer on Forward-Looking Statements
This press release contains statements that are forward-looking, including statements relating to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable. Actual results may differ materially from the results anticipated in the forward-looking statements due to a variety of factors, including but not limited to general economic and business conditions and the ability of Hexcel to complete the offering and deploy the resulting proceeds as indicated above, including the risk that the offering described above will not close on the indicated timetable or at all, and that the proceeds may not be able to be deployed as so indicated. Additional risk factors are described in Hexcel’s filings with the Securities and Exchange Commission. Hexcel does not undertake an obligation to update its forward-looking statements to reflect future events or circumstances, except as otherwise required by law.
About Hexcel
Hexcel Corporation is a global leader in advanced lightweight composites technology. We propel the future of flight, energy generation, transportation, and recreation through excellence in providing innovative high-performance material solutions that are lighter, stronger and tougher, helping to create a better world for us all. Our broad and unrivaled product range includes carbon fiber, specialty reinforcements, prepregs and other fiber-reinforced matrix materials, honeycomb, resins, engineered core and composite structures for use in commercial aerospace, space and defense, and industrial applications.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250211771734/en/
Kurt Goddard | Vice President Investor Relations | Kurt.Goddard@Hexcel.com | +1 (203) 352-6826
Source: Hexcel Corporation
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