Columbus McKinnon Announces Completion of Senior Secured Notes Offering

Rhea-AI Summary

Columbus McKinnon (Nasdaq: CMCO) completed an offering of $900.0 million aggregate principal amount of 7.125% senior secured notes due 2033 to finance its pending acquisition of Kito Crosby.

Proceeds, together with the sale of Series A cumulative convertible participating preferred shares to CD&R XII Keystone Holdings and proceeds under a New Credit Agreement, will fund the Acquisition, repay Kito Crosby indebtedness, refinance certain Company debt and pay fees and expenses. The Notes are initially unsecured and will become secured and guaranteed by U.S. subsidiaries upon closing. The Notes include a special mandatory redemption if the Acquisition does not close by the End Date (August 10, 2026).

Positive

• Raised $900.0 million through senior secured notes offering
• Financing aligned to fund the Kito Crosby acquisition and repay target debt
• Sale of Series A preferred to CD&R XII Keystone Holdings supports transaction financing
• Notes convertible to secured, guaranteed obligations upon acquisition closing

Negative

• Notes initially unsecured and unguaranteed until Acquisition closes
• Special mandatory redemption if Acquisition not closed by August 10, 2026
• Fixed 7.125% coupon implies notable interest expense over term

Key Figures

Notes offering size: $900.0 million Coupon rate: 7.125% Maturity year: 2033 +2 more

5 metrics

Notes offering size $900.0 million Aggregate principal amount of 7.125% senior secured notes due 2033

Coupon rate 7.125% Interest rate on senior secured notes due 2033

Maturity year 2033 Maturity of senior secured notes

Special redemption end date August 10, 2026 End Date for special mandatory redemption tied to Acquisition close

Stock purchase agreement date February 10, 2025 Date of Kito Crosby stock purchase agreement referenced for End Date

Market Reality Check

Price: $21.08 Vol: Volume 1,549,223 is 4.71x...

high vol

$21.08 Last Close

Volume Volume 1,549,223 is 4.71x the 20-day average of 329,201, indicating elevated trading interest ahead of this financing update. high

Technical Trading above its 200-day MA of 15.94 with a pre-news price of 21.08, showing a recovery from earlier lows.

Peers on Argus

CMCO was up 1.78% with heavy volume, while key machinery peers like WNC (+3.58%)...

CMCO was up 1.78% with heavy volume, while key machinery peers like WNC (+3.58%), MTW (+1.49%), TWI (+3.58%), HY (+2.26%) and ASTE (+2.03%) also traded higher, but no broad sector momentum was flagged by the scanner.

Previous Offering Reports

1 past event · Latest: Jan 20 (Negative)

Same Type Pattern 1 events

Date	Event	Sentiment	Move	Catalyst
Jan 20	Debt offering launch	Negative	-3.8%	Announced $1,225.0M senior secured notes to fund Kito Crosby acquisition.

Pattern Detected

Previous notes offering headlines were followed by a negative price reaction, suggesting some sensitivity to financing announcements.

Recent Company History

Recent news around Columbus McKinnon has focused on financing its pending acquisition of Kito Crosby. On Jan 20, 2026, an offering of $1,225.0 million senior secured notes due 2033 was announced, leading to a -3.75% move. Subsequent communications covered pricing the notes and related pro forma financials via 8-Ks. Today’s completion of the $900.0 million notes offering fits into this broader capital-structure build-out to fund the acquisition and refinance debt.

Historical Comparison

offering

+3.8 %

Average Historical Move

Historical Analysis

In the last offering-tagged event on Jan 20, 2026, CMCO’s senior notes announcement coincided with a -3.75% move. Today’s completion notice continues that same financing cycle for the Kito Crosby deal.

Typical Pattern

Financing has progressed from initial senior notes offering announcement to pricing and now completion, all tied to funding the Kito Crosby acquisition and related refinancing.

Market Pulse Summary

This announcement finalizes Columbus McKinnon’s $900.0 million, 7.125% senior secured notes due 2033...

Analysis

This announcement finalizes Columbus McKinnon’s $900.0 million, 7.125% senior secured notes due 2033, a key component of funding the Kito Crosby acquisition and refinancing existing debt. It follows earlier offering and pricing updates and includes a special mandatory redemption if the deal is not completed by August 10, 2026. Investors may focus on total leverage, acquisition integration, and future earnings reports to assess how this capital structure shift affects long-term performance.

Key Terms

senior secured notes, special mandatory redemption, security interest, Rule 144A, +3 more

7 terms

senior secured notes financial

"completed its offering of $900.0 million in aggregate principal amount of 7.125% senior secured notes due 2033"

Senior secured notes are loans a company sells to investors that are backed by specific assets and given first priority for repayment if the company defaults. Because they have a claim on collateral and are paid before other debts, they usually offer lower risk and correspondingly lower interest than unsecured debt; investors use them to judge how safe repayment and recovery of principal might be, like holding a mortgage instead of an unsecured credit card balance.

special mandatory redemption financial

"The Notes are subject to a special mandatory redemption in the event that (i) the consummation"

A special mandatory redemption is a contractual obligation that forces a company to repay certain debt or preferred shares early when a specific trigger event occurs (for example, a change in tax law, regulatory change, or sale). For investors it matters because it ends the expected income stream and returns principal at a pre-set price, potentially altering returns, tax outcomes and a company’s cash needs — like a lender calling a loan back when rules change.

security interest financial

"secured by a first priority security interest in substantially all of the assets of the Company"

A security interest is a legal claim a lender or creditor holds on a borrower's asset as collateral to secure repayment; if the borrower fails to pay, the creditor can seize or sell that asset to recover money owed. Think of it like a pawnshop tag on an item that gives the pawnbroker the right to sell it if the loan isn't repaid. For investors, security interests matter because they change how safely lenders and bondholders can recover funds and affect the hierarchy of claims if a company faces financial trouble.

Rule 144A regulatory

"sold only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act"

Rule 144A is a regulation that makes it easier for companies to sell private bonds to large investors without going through all the usual rules that apply to public sales. It matters because it helps companies raise money more quickly and privately, often attracting big investors looking for special deals.

Regulation S regulatory

"to non-U.S. persons in offshore transactions pursuant to Regulation S under the Securities Act"

Regulation S is a set of rules that allows companies to sell securities (like shares or bonds) to investors outside the United States without having to follow all U.S. securities laws. It matters because it makes it easier for companies to raise money from international investors while still complying with U.S. regulations.

Regulation D regulatory

"accredited investors (as defined in Rule 501(a)... under Regulation D promulgated under the Securities Act"

Regulation D is a set of rules that govern how companies can raise money from investors without going through the full process required for public stock offerings. It provides simplified options for private placements, making it easier for companies to seek investments from a smaller group of investors. For investors, it offers opportunities to invest in private companies, often with fewer restrictions, but also with different levels of risk and disclosure.

qualified institutional buyers financial

"were sold only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A"

Qualified institutional buyers are large organizations, like big investment firms or banks, that are allowed to buy certain types of investment opportunities not available to everyday investors. Their size and experience matter because it ensures they understand and can handle complex financial deals, making markets more efficient and secure.

AI-generated analysis. Not financial advice.

CHARLOTTE, N.C., Jan. 30, 2026 /PRNewswire/ -- Columbus McKinnon Corporation (Nasdaq: CMCO) ("Columbus McKinnon" or the "Company"), a leading designer, manufacturer and marketer of intelligent motion solutions for material handling, announced today it has completed its offering of $900.0 million in aggregate principal amount of 7.125% senior secured notes due 2033 (the "Notes") in connection with the Company's previously announced pending acquisition (the "Acquisition") of Kito Crosby Limited ("Kito Crosby").

Columbus McKinnon intends to use the net proceeds from the offering of the Notes, together with the proceeds from the sale of Series A Cumulative Convertible Participating Preferred Shares of the Company to CD&R XII Keystone Holdings, L.P. and the New Credit Agreement (as defined below), to finance the Acquisition (including the repayment of Kito Crosby's existing indebtedness), to refinance certain of the Company's existing indebtedness and to pay any related fees and expenses.

The offering of the Notes was not conditioned on the consummation of the Acquisition. The Notes are subject to a special mandatory redemption in the event that (i) the consummation of the Acquisition does not occur on or before close of business on August 10, 2026 (or such later date if the end date is extended under the Stock Purchase Agreement, dated as of February 10, 2025, by and among the Company, Kito Crosby, the equityholders of Kito Crosby set forth on the signature pages thereto and Ascend Overseas Limited, solely in its capacity as the representative) (the "End Date") or (ii) the Company delivers a notice to the trustee stating it has determined that the consummation of the Acquisition will not occur on or before the End Date.

The Notes are initially unsecured and not guaranteed by any subsidiary of the Company. Following the closing of the Acquisition, the Notes will be (i) secured by a first priority security interest in substantially all of the assets of the Company and its U.S. subsidiaries that will guarantee the new senior secured credit facilities that the Company expects to enter into in connection with the Acquisition (the "New Credit Agreement"), subject to certain thresholds, exceptions and permitted liens and (ii) unconditionally guaranteed, jointly and severally, on a senior secured basis by the Company's U.S. subsidiaries that will guarantee the New Credit Agreement.

The Notes and the related guarantees have not been, and will not be, registered under the Securities Act of 1933 (the "Securities Act") as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. The Notes and the related guarantees were sold only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act, to non-U.S. persons in offshore transactions pursuant to Regulation S under the Securities Act and to "institutional" accredited investors (as defined in Rule 501(a)(1), (2), (3), (7), (8), (9), (12) or (13) under Regulation D promulgated under the Securities Act).

This press release does not constitute an offer to sell, or the solicitation of any offer to buy, the Notes, nor shall there be any sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification of the Notes under the securities laws of that jurisdiction.

About Columbus McKinnon

Columbus McKinnon is a leading worldwide designer, manufacturer and marketer of intelligent motion solutions that move the world forward and improve lives by efficiently and ergonomically moving, lifting, positioning, and securing materials. Key products include hoists, crane components, precision conveyor systems, rigging tools, light rail workstations, and digital power and motion control systems. The Company is focused on commercial and industrial applications that require the safety and quality provided by its superior design and engineering know-how.

Safe Harbor Statement

This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements are generally identified by the use of forward-looking terminology, including the terms "anticipate," "believe," "continue," "could," "estimate," "expect," "illustrative," "intend," "likely," "may," "opportunity," "plan," "possible," "potential," "predict," "project," "shall," "should," "target," "will," "would" and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this document are forward looking statements.  Forward-looking statements are not based on historical facts, but instead represent our current expectations and assumptions regarding our business, the economy and other future conditions, and involve known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. It is not possible to predict or identify all such risks. These risks include, but are not limited to, the risk factors that are described under the section titled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended March 31, 2025, our Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 as well as in our other filings with the Securities and Exchange Commission, which are available on its website at www.sec.gov. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date they are made. Columbus McKinnon undertakes no duty to update publicly any such forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law, regulation or other competent legal authority.

Contacts:

Kristine Moser 
VP IR and Treasurer 
Columbus McKinnon Corporation 
704-322-2488
kristy.moser@cmco.com  

View original content to download multimedia:https://www.prnewswire.com/news-releases/columbus-mckinnon-announces-completion-of-senior-secured-notes-offering-302675375.html

SOURCE Columbus McKinnon Corporation

FAQ

What did Columbus McKinnon (CMCO) announce about the $900 million notes offering?

The company completed a $900.0 million offering of 7.125% senior secured notes due 2033. According to Columbus McKinnon, proceeds will help fund the Kito Crosby acquisition, repay Kito Crosby indebtedness, refinance company debt and pay related fees and expenses.

How will the new notes affect Columbus McKinnon (CMCO) security and guarantees?

The Notes are initially unsecured and not guaranteed by subsidiaries but will become secured and guaranteed after closing. According to Columbus McKinnon, they will obtain first-priority security interests and joint and several senior secured guarantees by U.S. subsidiaries upon Acquisition closing.

What happens if the Kito Crosby acquisition does not close by August 10, 2026 for CMCO?

The Notes include a special mandatory redemption if the Acquisition fails to close by the End Date. According to Columbus McKinnon, the redemption triggers apply if the Acquisition does not occur on or before August 10, 2026 (or an extended End Date).

Who were the buyers of Columbus McKinnon (CMCO) senior notes and are they registered?

The Notes were sold only to qualified institutional buyers, non-U.S. persons offshore, and certain institutional accredited investors. According to Columbus McKinnon, the notes and related guarantees were not and will not be registered under the Securities Act.

How will Columbus McKinnon (CMCO) use proceeds alongside the CD&R preferred sale and New Credit Agreement?

Proceeds, plus the Series A preferred sale to CD&R and New Credit Agreement proceeds, will finance the Acquisition and related repayments. According to Columbus McKinnon, funds will repay Kito Crosby debt, refinance existing Company debt and cover fees and expenses.