Matthews International Announces Pricing of Senior Notes
Matthews International (NASDAQ GSM: MATW) has priced a private offering of $300 million in 8.625% senior secured second lien notes due 2027. The notes will pay interest semi-annually, starting April 1, 2025, and mature on October 1, 2027. The offering is expected to close on September 27, 2024.
The company plans to use the net proceeds, along with borrowings from its senior credit facility, to redeem all outstanding 5.25% senior notes due December 1, 2025. This redemption is scheduled for around October 24, 2024. The proceeds will also cover accrued and unpaid interest on the existing 2025 notes and satisfy the indenture governing them.
This announcement is not an offer to sell or solicitation to buy the notes, which will only be offered through a private offering memorandum.
Matthews International (NASDAQ GSM: MATW) ha prezzato un'offerta privata di 300 milioni di dollari in note garantite di secondo grado senior con un tasso del 8,625% in scadenza nel 2027. Le note pagheranno interessi semestralmente, a partire dal 1° aprile 2025, e scadranno il 1° ottobre 2027. Si prevede che l'offerta si chiuda il 27 settembre 2024.
La società prevede di utilizzare i proventi netti, insieme ai prestiti dalla sua linea di credito senior, per riscattare tutte le note senior 5,25% in scadenza il 1° dicembre 2025. Questo riscatto è programmato per circa il 24 ottobre 2024. I proventi copriranno anche gli interessi maturati e non pagati sulle note esistenti del 2025 e soddisferanno l'indentura che le regola.
Questo annuncio non è un'offerta di vendita o una sollecitazione all'acquisto delle note, che saranno offerte solo tramite un memorandum di offerta privata.
Matthews International (NASDAQ GSM: MATW) ha establecido un precio para una oferta privada de 300 millones de dólares en notas senior aseguradas de segundo grado con un interés del 8,625% con vencimiento en 2027. Las notas pagarán intereses semestralmente, a partir del 1 de abril de 2025, y vencerán el 1 de octubre de 2027. Se espera que la oferta se cierre el 27 de septiembre de 2024.
La compañía planea utilizar los ingresos netos, junto con los préstamos de su línea de crédito senior, para redimir todas las notas senior del 5,25% que vencen el 1 de diciembre de 2025. Esta redención está programada para alrededor del 24 de octubre de 2024. Los ingresos también cubrirán los intereses acumulados y no pagados sobre las notas existentes de 2025 y satisfarán el contrato que las regula.
Este anuncio no es una oferta de venta ni una solicitud para comprar las notas, que solo se ofrecerán a través de un memorando de oferta privada.
매튜스 인터내셔널(NASDAQ GSM: MATW)은 3억 달러 규모의 사모 발행 가격을 책정했습니다 8.625%의 상환우선 제2담보부 노트로 2027년 만기입니다. 이 노트는 2025년 4월 1일부터 반기별로 이자를 지급하고, 2027년 10월 1일에 만기됩니다. 이 발행은 2024년 9월 27일에 마감될 예정입니다.
회사는 순수익을 이용해, 고위험 크레딧 시설의 차입금과 함께 2025년 12월 1일 만기인 5.25%의 모든 유통 노트를 상환할 계획입니다. 이 상환은 2024년 10월 24일경에 진행될 예정입니다. 수익금은 2025년 기존 노트에 대한 발생한 미지급 이자를 충당하고 이를 규율하는 문서에서 요구하는 조건을 만족시킬 것입니다.
이 발표는 노트를 판매하거나 구매를 요청하는 것이 아니며, 사모 발행 메모랜덤을 통해서만 제공됩니다.
Matthews International (NASDAQ GSM: MATW) a fixé le prix d'une offre privée de 300 millions de dollars en obligations sécurisées de deuxième rang à 8,625%, arrivant à échéance en 2027. Ces obligations paieront des intérêts semestriellement, à partir du 1er avril 2025, et arriveront à échéance le 1er octobre 2027. La clôture de l'offre est prévue pour le 27 septembre 2024.
L'entreprise prévoit d'utiliser les produits nets, ainsi que les emprunts de sa ligne de crédit senior, pour racheter toutes les obligations senior à 5,25% arrivant à échéance le 1er décembre 2025. Ce rachat est programmé autour du 24 octobre 2024. Les produits couvriront également les intérêts accumulés et non payés sur les obligations existantes de 2025 et satisferont l'indenture les régissant.
Cet annonce n'est pas une offre de vente ou une sollicitation d'achat des obligations, qui ne seront proposées que par le biais d'un mémorandum d'offre privé.
Matthews International (NASDAQ GSM: MATW) hat eine privat platzierte Anleihe in Höhe von 300 Millionen US-Dollar mit einem Zinssatz von 8,625% und einer Laufzeit bis 2027 festgelegt. Die Anleihen zahlen ab dem 1. April 2025 halbjährlich Zinsen und laufen am 1. Oktober 2027 aus. Der Abschluss der Platzierung wird für den 27. September 2024 erwartet.
Das Unternehmen plant, die Nettoerlöse, zusammen mit den Darlehen aus seiner Senior-Kreditfazilität, zu verwenden, um alle gebliebenen 5,25% Senior-Anleihen, die am 1. Dezember 2025 fällig sind, zurückzuzahlen. Diese Rückzahlung ist für den 24. Oktober 2024 vorgesehen. Die Erlöse werden auch aufgelaufene und nicht gezahlte Zinsen auf die bestehenden Anleihen von 2025 abdecken und den auf sie zutreffenden Vertragsbedingungen genügen.
Diese Ankündigung ist kein Angebot zum Verkauf oder eine Aufforderung zum Kauf der Anleihen, die nur über ein privates Angebotsschreiben angeboten werden.
- Successful pricing of $300 million in senior secured notes
- Refinancing of existing debt with new notes at 8.625% interest rate
- Extension of debt maturity from 2025 to 2027
- Higher interest rate on new notes (8.625%) compared to existing notes (5.25%)
- Increase in interest expenses due to higher rate on new notes
Insights
Matthews International's pricing of
The new notes' second lien status suggests they are subordinate to other debt, which could indicate a more complex capital structure. The semi-annual interest payments will increase the company's debt service costs, potentially impacting cash flow. However, the refinancing eliminates near-term maturity risk associated with the 2025 notes.
Investors should note that while this move addresses immediate refinancing needs, it comes at a higher cost. The impact on the company's financial health will depend on how effectively it manages the increased interest expense and whether the extended maturity provides sufficient runway for operational improvements or growth initiatives.
The structured nature of this offering as a private placement under Rule 144A is significant from a legal and regulatory perspective. By avoiding a public offering, Matthews International bypasses certain SEC registration requirements, potentially expediting the process and reducing associated costs.
The inclusion of specific language regarding the non-solicitation of offers and the limitation of sales to qualified institutional buyers indicates strict compliance with securities laws. This approach minimizes legal risks associated with broader public offerings.
The disclaimer about not constituting a redemption notice for the existing notes is a important legal protection. It prevents any misinterpretation that could lead to legal challenges from current noteholders. The careful wording throughout the announcement demonstrates a thorough approach to legal risk management in capital market transactions.
PITTSBURGH, Sept. 24, 2024 (GLOBE NEWSWIRE) -- Matthews International Corporation (NASDAQ GSM: MATW) (the “Company”) has priced its previously announced private offering of
The Company intends to use the net proceeds of the offering, together with borrowings under the Company’s senior credit facility, to redeem all of its outstanding
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any offers of the Notes will be made only by means of a private offering memorandum. This notice is being issued pursuant to and in accordance with Rule 135c under the Securities Act.
This press release does not constitute a notice of redemption with respect to, or an offer or solicitation to purchase, the Existing 2025 Notes or any other securities.
About Matthews International Corporation
Matthews International Corporation is a global provider of memorialization products, industrial technologies, and brand solutions. The Memorialization segment is a leading provider of memorialization products, including memorials, caskets, cremation-related products, and cremation and incineration equipment, primarily to cemetery and funeral home customers that help families move from grief to remembrance. The Industrial Technologies segment includes the design, manufacturing, service and distribution of high-tech custom energy storage solutions; product identification and warehouse automation technologies and solutions, including order fulfillment systems for identifying, tracking, picking and conveying consumer and industrial products; and coating and converting lines for the packaging, pharma, foil, décor and tissue industries. The SGK Brand Solutions segment is a leading provider of packaging solutions and brand experiences, helping companies simplify their marketing, amplify their brands and provide value. The Company has approximately 12,000 employees in more than 30 countries on six continents that are committed to delivering the highest quality products and services.
Forward-looking Information
Any forward-looking statements contained in this release are included pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding the expectations, hopes, beliefs, intentions or strategies of the Company regarding the future, and may be identified by the use of words such as “expects,” “believes,” “intends,” “projects,” “anticipates,” “estimates,” “plans,” “seeks,” “forecasts,” “predicts,” “objective,” “targets,” “potential,” “outlook,” “may,” “will,” “could” or the negative of these terms, other comparable terminology and variations thereof. Such forward-looking statements involve known and unknown risks and uncertainties that may cause the Company’s actual results in future periods to be materially different from management’s expectations, and no assurance can be given that such expectations will prove correct. Factors that could cause the Company's results to differ materially from the results discussed in such forward-looking statements principally include changes in domestic or international economic conditions, changes in foreign currency exchange rates, changes in interest rates, changes in the cost of materials used in the manufacture of the Company's products, any impairment of goodwill or intangible assets, environmental liability and limitations on the Company’s operations due to environmental laws and regulations, disruptions to certain services, such as telecommunications, network server maintenance, cloud computing or transaction processing services, provided to the Company by third-parties, changes in mortality and cremation rates, changes in product demand or pricing as a result of consolidation in the industries in which the Company operates, or other factors such as supply chain disruptions, labor shortages or labor cost increases, changes in product demand or pricing as a result of domestic or international competitive pressures, ability to achieve cost-reduction objectives, unknown risks in connection with the Company's acquisitions and divestitures, cybersecurity concerns and costs arising with management of cybersecurity threats, effectiveness of the Company's internal controls, compliance with domestic and foreign laws and regulations, technological factors beyond the Company's control, impact of pandemics or similar outbreaks, or other disruptions to our industries, customers, or supply chains, the impact of global conflicts, such as the current war between Russia and Ukraine, the outcome of the Company's dispute with Tesla, Inc. ("Tesla"), and other factors described in the Company’s Annual Report on Form 10-K and other periodic filings with the U.S. Securities and Exchange Commission.
Matthews International Corporation
Corporate Office
Two NorthShore Center
Pittsburgh, PA 15212-5851
Phone: (412) 442-8200
| Contact: | Steven F. Nicola | William D. Wilson | |||||||||
| Chief Financial Officer and Secretary | Senior Director, Corporate Development | ||||||||||
FAQ
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