NORTH BETHESDA, Md. – ESAB Corporation (NYSE: ESAB), a leading industrial compounder, has upsized its offering of senior notes to $700 million, an increase from the initially announced $600 million. The 6.25% Senior Notes are due in 2029, and the offering is anticipated to close on April 9, 2024, subject to standard closing conditions.
The company has expressed intentions to allocate the net proceeds from the sale of the notes towards repaying existing borrowings under its senior term loan A-3 facility. The remaining funds are earmarked for general corporate purposes. Moreover, certain domestic subsidiaries of ESAB will guarantee the notes.
The sale of these notes and the related guarantees will be carried out in a private offering. It is targeted at a select group of U.S. investors deemed qualified institutional buyers, in compliance with Rule 144A under the Securities Act of 1933. The offering will also be available to certain non-U.S. persons in accordance with Regulation S under the same act.
It is important to note that the notes and their guarantees have not been registered under the Securities Act or any state securities laws. Therefore, they may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
The press release emphasizes that this announcement does not constitute an offer to sell or the solicitation of an offer to buy any securities. The completion of the offering is not guaranteed and is contingent upon market conditions and other factors.
ESAB Corporation, established in 1904, has a significant presence in the industrial sector, with approximately 9,000 employees and operations in around 150 countries. This press release includes forward-looking statements that involve risks and uncertainties, which could cause actual results to differ materially from those projected.
This news article is based on a press release statement from ESAB Corporation.
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