The Manitowoc Company, Inc. Announces Proposed Offering of $300 Million of Senior Secured Second Lien Notes due 2031
The Manitowoc Company, Inc. (NYSE: MTW) has announced a private offering of $300 million in senior secured second lien notes due 2031, subject to market conditions and an amendment to its existing asset-based revolving credit facility. The amendment aims to increase commitments by $50 million to $325 million. The notes will be guaranteed by Manitowoc's domestic subsidiaries.
Manitowoc plans to use the net proceeds to redeem all outstanding 9.00% Senior Secured Second Lien Notes due 2026 and pay related fees and expenses. Any remaining funds will be used for general corporate purposes. The notes will be offered to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S. They have not been registered under the Securities Act and may not be offered or sold in the U.S. without exemption or registration.
La Manitowoc Company, Inc. (NYSE: MTW) ha annunciato un'offerta privata di 300 milioni di dollari in note senior garantite di secondo grado con scadenza nel 2031, soggette a condizioni di mercato e a una modifica della sua attuale linea di credito revolving basata sugli attivi. La modifica mira ad aumentare gli impegni di 50 milioni di dollari a 325 milioni di dollari. Le note saranno garantite dalle sussidiarie domestiche di Manitowoc.
Manitowoc prevede di utilizzare i proventi netti per riscattare tutte le note senior garantite di secondo grado con un tasso del 9,00% in scadenza nel 2026 e pagare le relative spese e commissioni. I fondi rimanenti saranno utilizzati per scopi aziendali generali. Le note saranno offerte a compratori istituzionali qualificati ai sensi della Regola 144A e a soggetti non statunitensi ai sensi del Regolamento S. Non sono state registrate ai sensi del Securities Act e non possono essere offerte o vendute negli Stati Uniti senza esenzione o registrazione.
La empresa Manitowoc Company, Inc. (NYSE: MTW) ha anunciado una oferta privada de 300 millones de dólares en notas garantizadas senior de segundo grado con vencimiento en 2031, sujeta a condiciones del mercado y a una enmienda de su línea de crédito revolvente basada en activos existente. La enmienda tiene como objetivo aumentar los compromisos en 50 millones de dólares a 325 millones de dólares. Las notas serán garantizadas por las filiales nacionales de Manitowoc.
Manitowoc planea utilizar los ingresos netos para redimir todas las Notas Senior Garantizadas de Segundo Grado con un interés del 9.00% que vencen en 2026 y pagar los costos y gastos relacionados. Los fondos restantes se destinarán a fines corporativos generales. Las notas se ofrecerán a compradores institucionales calificados bajo la Regla 144A y a personas no estadounidenses bajo la Regulación S. No se han registrado bajo la Ley de Valores y no pueden ser ofrecidas ni vendidas en EE. UU. sin una exención o registro.
매니토우크 컴퍼니 주식회사(뉴욕증권거래소: MTW)는 3억 달러의 2031년 만기 선순위 담보 차입금 제2위 노트에 대한 사모 공모를 발표했습니다. 이는 시장 상황과 기존 자산 기반 회전 신용 시설의 수정에 따라 달라집니다. 수정안은 5천만 달러를 3억 2천5백만 달러로 늘리기 위해 노력하고 있습니다. 이 노트는 매니토우크의 국내 자회사들이 보증합니다.
매니토우크는 순수익을 사용하여 2026년 만기인 9.00% 선순위 담보 제2위 노트 모든 발행물을 상환하고 관련 수수료 및 비용을 지불하는 데 사용할 계획입니다. 남은 자금은 일반 기업 목적에 사용됩니다. 이 노트는 규칙 144A에 따라 자격이 있는 기관 투자자에게 제공되며, 규정 S에 따라 미국 외의 개인에게도 제공됩니다. 이 노트는 증권법에 따라 등록되지 않았으며, 면제 또는 등록 없이는 미국에서 제공되거나 판매될 수 없습니다.
La Manitowoc Company, Inc. (NYSE: MTW) a annoncé une offre privée de 300 millions de dollars d'obligations senior garanties de deuxième rang échues en 2031, sous réserve des conditions de marché et d'un amendement à sa ligne de crédit revolving garantissant les actifs. L'amendement vise à augmenter les engagements de 50 millions de dollars pour atteindre 325 millions de dollars. Les obligations seront garanties par les filiales nationales de Manitowoc.
Manitowoc prévoit d'utiliser le produit net pour racheter toutes les obligations Senior Secured Second Lien de 9,00 % échues en 2026 et régler les frais et dépenses associés. Les fonds restants seront utilisés à des fins corporation générales. Les obligations seront proposées à des acheteurs institutionnels qualifiés conformément à la règle 144A et à des personnes non américaines conformément au règlement S. Elles n'ont pas été enregistrées en vertu de la loi sur les valeurs mobilières et ne peuvent être offertes ou vendues aux États-Unis sans exemption ou enregistrement.
Die Manitowoc Company, Inc. (NYSE: MTW) hat eine private Platzierung von 300 Millionen Dollar in senior gesicherten zweiten Hypothekenanleihen mit Fälligkeit im Jahr 2031 angekündigt, die von den Marktbedingungen und einer Änderung ihrer bestehenden aktivbasierten revolvierenden Kreditfazilität abhängt. Die Änderung zielt darauf ab, die Zusagen um 50 Millionen Dollar auf 325 Millionen Dollar zu erhöhen. Die Anleihen werden von den inländischen Tochtergesellschaften von Manitowoc garantiert.
Manitowoc plant, die Nettomittel zu verwenden, um alle ausstehenden 9,00% Senior Secured Second Lien Notes, die 2026 fällig werden, einzulösen und die damit verbundenen Gebühren und Ausgaben zu bezahlen. Alle verbleibenden Mittel werden für allgemeine Unternehmenszwecke verwendet. Die Anleihen werden unter Regel 144A an qualifizierte institutionelle Käufer und an Nicht-US-Personen unter Regulation S angeboten. Sie sind nicht nach dem Wertpapiergesetz registriert und dürfen in den USA nicht angeboten oder verkauft werden, es sei denn, es liegt eine Ausnahme oder Registrierung vor.
- Potential increase in credit facility commitments by $50 million to $325 million
- Refinancing of existing 9.00% Senior Secured Second Lien Notes due 2026 with new 2031 notes
- Increase in long-term debt by $300 million
- Potential dilution of existing shareholders if new shares are issued
Insights
Manitowoc's proposed
This debt restructuring by Manitowoc, a key player in the crane manufacturing industry, reflects broader trends in the industrial sector. Companies are taking advantage of the current interest rate environment to optimize their capital structures. The move to increase the revolving credit facility suggests anticipation of potential growth or the need for additional working capital. This could be indicative of expected increased demand in the construction and infrastructure sectors, which are key markets for Manitowoc's products. However, investors should be cautious as the success of this strategy depends on future market conditions and the company's ability to generate sufficient cash flows to service the new debt.
The offering's structure as a private placement to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S is a common approach for such transactions. This method allows Manitowoc to access capital markets quickly without the extensive SEC registration process. However, it's important to note that these notes will have liquidity in the secondary market. The company's careful wording about the offering being subject to market conditions and the amendment of the ABL facility suggests potential flexibility in timing or terms. Investors should be aware that until the offering is completed, there remains a risk of changes or even cancellation based on market reception or other factors.
Manitowoc intends to use the net proceeds from the Offering, together with other cash on hand as necessary, to (i) redeem all of its outstanding
The Notes will be offered and sold to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A and outside
This press release shall not constitute an offer to sell, or a solicitation of an offer to buy, the Notes or any other securities and shall not constitute an offer to sell, or a solicitation of an offer to buy, or a sale of, the Notes or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful. This press release is not an offer to purchase or a solicitation of an offer to sell the Existing Notes and does not constitute a redemption notice for the Existing Notes.
Forward-Looking Statements
This press release includes “forward-looking statements” intended to qualify for the safe harbor from liability under the Private Securities Litigation Reform Act of 1995. Any statements contained in this press release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, which include, but are not limited to, statements regarding the Offering and the timing of the closing of the Offering and the anticipated use of proceeds therefrom, are based on the current expectations of the management of Manitowoc and are subject to uncertainty and changes in circumstances. Forward-looking statements include, without limitation, statements typically containing words such as “intends,” “expects,” “anticipates,” “targets,” “estimates,” and words of similar import. By their nature, forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results and developments to differ materially include, among others:
- Macroeconomic conditions, including inflation, high interest rates and recessionary concerns, as well as continuing global supply chain constraints, labor constraints, logistics constraints and cost pressures such as changes in raw material and commodity costs, have had, and may continue to have, a negative impact on Manitowoc’s ability to convert backlog into revenue which could, and has, impacted its financial condition, cash flows, and results of operations (including future uncertain impacts);
- actions of competitors;
- changes in economic or industry conditions generally or in the markets served by Manitowoc;
-
geopolitical events, including the ongoing conflicts in
Ukraine and in theMiddle East , other political and economic conditions and risks and other geographic factors, has had and may continue to lead to market disruptions, including volatility in commodity prices (including oil and gas), raw material and component costs, energy prices, inflation, consumer behavior, supply chain, and credit and capital markets, and could result in the impairment of assets; - changes in customer demand, including changes in global demand for high-capacity lifting equipment, changes in demand for lifting equipment in emerging economies and changes in demand for used lifting equipment including changes in government approval and funding of projects;
- the ability to convert backlog, orders and order activity into sales and the timing of those sales;
- failure to comply with regulatory requirements related to the products and aftermarket services Manitowoc sells;
- the ability to capitalize on key strategic opportunities and the ability to implement Manitowoc’s long-term initiatives;
- impairment of goodwill and/or intangible assets;
- changes in revenues, margins and costs;
- the ability to increase operational efficiencies across Manitowoc and to capitalize on those efficiencies;
- the ability to generate cash and manage working capital consistent with Manitowoc’s stated goals;
- work stoppages, labor negotiations, labor rates and labor costs;
- Manitowoc’s ability to attract and retain qualified personnel;
- changes in the capital and financial markets;
- the ability to complete and appropriately integrate acquisitions, strategic alliances, joint ventures or other significant transactions;
- issues associated with the availability and viability of suppliers;
- the ability to significantly improve profitability;
- realization of anticipated earnings enhancements, cost savings, strategic options and other synergies, and the anticipated timing to realize those savings, synergies and options;
- the ability to focus on customers, new technologies and innovation;
- uncertainties associated with new product introductions, the successful development and market acceptance of new and innovative products that drive growth;
- the replacement cycle of technologically obsolete products;
- risks associated with high debt leverage;
- foreign currency fluctuation and its impact on reported results;
- the ability of Manitowoc's customers to receive financing;
- risks associated with data security and technological systems and protections;
- the ability to direct resources to those areas that will deliver the highest returns;
- risks associated with manufacturing or design defects;
- natural disasters, other weather events, pandemics and other public health crises disrupting commerce in one or more regions of the world;
- issues relating to the ability to timely and effectively execute on manufacturing strategies, general efficiencies and capacity utilization of Manitowoc’s facilities;
- the ability to focus and capitalize on product and service quality and reliability;
- issues associated with the quality of materials, components and products sourced from third parties and the ability to successfully resolve those issues;
- issues related to workforce reductions and potential subsequent rehiring;
- changes in laws throughout the world, including governmental regulations on climate change;
- the inability to defend against potential infringement claims on intellectual property rights;
- the ability to sell products and services through distributors and other third parties;
- issues affecting the effective tax rate for the year;
- acts of terrorism; and
- other risks and factors detailed in Manitowoc's 2023 Annual Report on Form 10-K and its other filings with the United States Securities and Exchange Commission (the “SEC”).
Manitowoc undertakes no obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements only speak as of the date on which they are made. Information on the potential factors that could affect Manitowoc’s actual results of operations is included in its filings with the SEC, including but not limited to its Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
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Ion Warner
SVP, Marketing and Investor Relations
+1 414-760-4805
Source: The Manitowoc Company, Inc.
FAQ
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