JBT Marel plans $500 million convertible notes offering and amends credit agreement pricing
JBT Marel said on September 3, 2025 that it intends to sell $500 million of convertible senior notes due 2030 in a private offering, with an option for initial purchasers to buy up to $75 million more. The company also amended its credit agreement to lower revolving loan pricing and permit up to $600 million of unsecured convertible notes through December 31, 2025. The filing says proceeds will partly fund hedge and warrant transactions, partly repay revolver borrowings and later help retire its 0.25% convertible notes due 2026; the warrant transactions could dilute common shares if the stock price exceeds the strike price.
- Intended offering of $500 million convertible senior notes due 2030, with an option for up to $75 million more within a 13-day period
- Proceeds to partly pay the net cost of convertible note hedge and warrant transactions and repay part of revolver borrowings; company later plans to repay or refinance its 0.25% convertible notes due 2026
- Second Amendment dated September 3, 2025 sets revolver margin at SOFR plus 1.125% to 1.750% and removes the 10 basis point credit spread adjustment
- Warrant transactions could have a dilutive effect on common stock if the market price exceeds the warrant strike price