Nordson Corporation Announces Pricing of $600 Million of 4.500% Notes due 2029

Rhea-AI Summary

Nordson (Nasdaq: NDSN) has announced the pricing of its $600 million offering of 4.500% notes due 2029. The offering is expected to close on September 9, 2024, subject to customary conditions. The company plans to use the net proceeds to:

• Repay borrowings under its $500 million 364-Day Term Loan
• Pay transaction-related fees and expenses
• Fund general corporate purposes

The Term Loan was used to finance Nordson's acquisition of Atrion on August 21, 2024. Morgan Stanley & Co. , BNP Paribas Securities Corp., and Wells Fargo Securities, are acting as joint book-running managers for the offering, which is being made under an effective shelf registration statement filed with the SEC.

Positive

• Successful pricing of $600 million notes offering
• Repayment of $500 million 364-Day Term Loan, potentially improving debt structure
• Completion of Atrion acquisition, expanding business portfolio

Negative

• Increase in long-term debt with 4.500% interest rate until 2029
• Potential dilution of shareholder value due to increased debt load

Insights

Financial Analyst

Nordson's $600 million notes offering at 4.500% interest rate is a strategic move to refinance its recent acquisition debt. This fixed-rate, long-term debt replaces the short-term loan used for the Atrion purchase, potentially stabilizing the company's financial structure.

The 4.500% interest rate seems competitive in the current market, suggesting investor confidence in Nordson's creditworthiness. This debt issuance may impact the company's leverage ratios and interest expenses, which investors should monitor in future earnings reports.

The successful placement of these notes demonstrates Nordson's strong market access and financial flexibility, which could be viewed positively by investors considering the company's growth strategy and capital allocation plans.

Market Research Analyst

Nordson's decision to issue $600 million in notes signals confidence in future cash flows to service this debt. The 5-year maturity aligns with a medium-term growth strategy, potentially involving further acquisitions or capital investments.

The timing of this offering, shortly after the Atrion acquisition, suggests Nordson is proactively managing its capital structure. This could indicate management's focus on maintaining financial flexibility for future opportunities.

Investors should consider how this debt issuance fits into Nordson's broader growth and expansion plans. The market's reception to this offering could provide insights into investor sentiment towards Nordson's financial management and growth prospects.

WESTLAKE, Ohio--(BUSINESS WIRE)-- Nordson Corporation (Nasdaq: NDSN) (“Nordson” or the “Company”) today announced the pricing of its offering (the “Offering”), on September 4, 2024, of $600 million aggregate principal amount of 4.500% notes due 2029 (the “notes”). The Offering is expected to close on September 9, 2024, subject to the satisfaction or waiver of customary closing conditions.

The Company intends to use the net proceeds of the Offering (i) to repay its borrowings under its $500 million 364-Day Term Loan, entered into in connection with the completion of the Company’s acquisition of Atrion Corporation and its subsidiaries on August 21, 2024, (ii) to pay transaction related fees and expenses related to the Offering and (iii) for general corporate purposes.

Morgan Stanley & Co. LLC, BNP Paribas Securities Corp. and Wells Fargo Securities, LLC are acting as joint book-running managers for the Offering.

The Offering is being made pursuant to an effective shelf registration statement (including a prospectus) filed with the Securities and Exchange Commission (the “SEC”) on September 5, 2023 and a preliminary prospectus supplement filed with the SEC on September 4, 2024. Copies of the prospectus supplement and the base prospectus may be obtained by contacting Morgan Stanley & Co. LLC at c/o Morgan Stanley & Co. LLC, 1585 Broadway, New York, New York 10036 (fax: (212) 507-8999), Attention: Investment Banking Division; BNP Paribas Securities Corp. at c/o BNP Paribas Securities Corp., 787 Seventh Avenue, 3rd Floor, New York, New York 10019 (email: DL.US.Syndicate.Support@us.bnpparibas.com), Attention: Debt Syndicate Desk; or Wells Fargo Securities, LLC at c/o Wells Fargo Securities, LLC, 608 2nd Avenue South, Suite 1000, Minneapolis, Minnesota 55402 (email: wfscustomerservice@wellsfargo.com; tel: (800) 645-3751), Attention: WFS Customer Service. You may also obtain these documents for free from the SEC’s EDGAR database available online at www.sec.gov. The information contained in this press release is for informational purposes only and shall not constitute an offer to sell or a solicitation of an offer to buy the notes, nor shall there be any sale of the notes in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. This press release contains information about pending transactions, and there can be no assurance that these transactions will be completed.

About Nordson

Nordson Corporation is an innovative precision technology company that leverages a scalable growth framework through an entrepreneurial, division-led organization to deliver top tier growth with leading margins and returns. The Company’s direct sales model and applications expertise serves global customers through a wide variety of critical applications. Its diverse end market exposure includes consumer non-durable, medical, electronics and industrial end markets. Founded in 1954 and headquartered in Westlake, Ohio, the Company has operations and support offices in over 35 countries.

Disclosure Regarding Forward-Looking Statements

Certain statements contained in this release, including statements with respect to the closing of the Offering and the expected use of proceeds therefrom, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Section 27A of the Securities Act. Forward-looking statements may be identified by terminology such as “may,” “will,” “should,” “could,” “expects,” “anticipates,” “believes,” “projects,” “forecasts,” “outlook,” “guidance,” “continue,” “target,” or the negative of such terms or comparable terminology. These statements reflect management’s current expectations and involve a number of risks and uncertainties. These risks and uncertainties include, but are not limited to, U.S. and international economic conditions; financial and market conditions; currency exchange rates and devaluations; possible acquisitions including the Company’s ability to complete and successfully integrate acquisitions, including the integration of CyberOptics Corporation, ARAG Group and Atrion Corporation; the Company’s ability to successfully divest or dispose of businesses that are deemed not to fit with its strategic plan; the effects of changes in U.S. trade policy and trade agreements; the effects of changes in tax law; and the possible effects of events beyond the Company’s control, such as political unrest, including the conflicts in Europe and the Middle East, acts of terror, natural disasters and pandemics, and the other factors discussed in Item 1A (Risk Factors) in the Company’s most recently filed Annual Report on Form 10-K for the year ended October 31, 2023 and any subsequently filed Quarterly Reports on Form 10-Q or the Company’s other filings with the Securities and Exchange Commission, which should be reviewed carefully. New risks emerge from time to time and it is not possible for management to predict all risks, nor can management assess the impact of all factors on the Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements the Company may make. The Company undertakes no obligation to update or revise any forward-looking statement in this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240904530836/en/

Lara Mahoney

Vice President,

Investor Relations & Corporate Communications

440.204.9985

Lara.Mahoney@nordson.com

Source: Nordson Corporation

FAQ

What is the amount and interest rate of Nordson's (NDSN) new notes offering?

Nordson (NDSN) has priced an offering of $600 million aggregate principal amount of 4.500% notes due 2029.

When is the expected closing date for Nordson's (NDSN) notes offering?

The notes offering is expected to close on September 9, 2024, subject to customary closing conditions.

How does Nordson (NDSN) plan to use the proceeds from the notes offering?

Nordson plans to use the proceeds to repay its $500 million 364-Day Term Loan, pay transaction-related fees and expenses, and for general corporate purposes.

Which investment banks are managing Nordson's (NDSN) notes offering?

Morgan Stanley & Co. , BNP Paribas Securities Corp., and Wells Fargo Securities, are acting as joint book-running managers for the offering.