Columbus McKinnon Announces Offering of Senior Secured Notes

Columbus McKinnon (Nasdaq: CMCO) announced an offering of $1,225.0 million aggregate principal amount of senior secured notes due 2033 to help finance its pending acquisition of Kito Crosby and to refinance indebtedness.

Rhea-AI Summary

Columbus McKinnon (Nasdaq: CMCO) announced an offering of $1,225.0 million aggregate principal amount of senior secured notes due 2033 to help finance its pending acquisition of Kito Crosby and to refinance indebtedness. The offering is subject to market and customary conditions and is not conditioned on closing the Acquisition.

The Notes will be initially unsecured and unguaranteed, but upon closing of the Acquisition they will become first-priority secured and unconditionally guaranteed by certain U.S. subsidiaries. The Notes are offered only to qualified institutional buyers and certain accredited investors under Rule 144A, Regulation S and Regulation D. The Notes include a special mandatory redemption if the Acquisition does not close on or before August 10, 2026.

Positive

• Proceeds earmarked to finance the Kito Crosby acquisition and repay its debt
• Large issuance size: $1,225.0 million senior notes due 2033
• Notes will become first-priority secured and guaranteed after Acquisition closes

Negative

• Notes are initially unsecured and not guaranteed pending Acquisition closing
• Special mandatory redemption if Acquisition not completed by August 10, 2026
• Offering limited to qualified institutional and certain accredited investors, restricting retail access

Argus Jan 20 session

-3.75% close to close Open Argus

Details

News Market Reaction – CMCO

On Jan 20, the day this news came out, CMCO closed 3.75% below the previous close.

Data tracked by StockTitan Argus for the Jan 20 session.

Key Figures

Senior secured notes offering: $1,225.0 million Notes maturity: 2033 Acquisition deadline: August 10, 2026 +5 more

Senior secured notes offering

$1,225.0 million

Aggregate principal amount of Notes due 2033 to finance Kito Crosby deal and refinancing

Notes maturity

2033

Stated maturity year of the senior secured notes

Acquisition deadline

August 10, 2026

End Date for special mandatory redemption condition tied to Kito Crosby deal

Stock Purchase Agreement date

February 10, 2025

Date of Stock Purchase Agreement for Kito Crosby acquisition

Current share price

$20.79

Pre-news price vs 52-week range $11.7807–$37.81

Price change

-2.62%

24-hour move prior to this offering announcement

52-week high discount

-45.01%

Price vs 52-week high of $37.81 before the news

52-week low premium

76.48%

Price vs 52-week low of $11.7807 before the news

Historical Context

5 past events · Latest: Jan 14

5 events

1. Jan 14

   Prelim earnings update

   24h Move

   +2.9%

   Preliminary Q3 sales, EBITDA, EPS ranges and backlog update ahead of full results.

2. Jan 14

   M&A and divestiture

   24h Move

   +2.9%

   Reiterated Kito Crosby acquisition, product-line divestiture and synergy/deleveraging framework.

3. Nov 05

   Conference appearance

   24h Move

   -0.9%

   Announcement of participation in Baird Global Industrial Conference and webcast availability.

4. Oct 30

   Quarterly earnings

   24h Move

   +15.3%

   Q2 FY26 sales growth, positive net income, debt repayment and reaffirmed guidance.

5. Oct 20

   Dividend declaration

   24h Move

   +3.1%

   Board declared a regular quarterly dividend of $0.07 per common share.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

senior secured notes, special mandatory redemption, Rule 144A, Regulation S, +3 more

7 terms

senior secured notes financial

"announced today an offering of $1,225.0 million in aggregate principal amount of 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 will be 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.

Rule 144A regulatory

"offered 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

"as defined in Rule 501(a)(1), (2), (3), (7), (8), (9), (12) or (13) 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

"offered 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.

institutional accredited investors financial

"and to "institutional" accredited investors (as defined in Rule 501(a)(1), (2), (3), (7), (8), (9), (12) or (13)"

Large financial organizations—such as banks, pension funds, insurance companies, endowments and asset managers—that meet regulatory criteria based on size or experience to buy private, complex, or otherwise restricted securities. They matter to investors because their participation brings big pools of capital, often affects pricing and liquidity, and signals confidence or concern in an offering the way a well-known backer can sway public opinion about a new product.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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CHARLOTTE, N.C., Jan. 20, 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 an offering of $1,225.0 million in aggregate principal amount of 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"). The proposed offering is subject to market and other customary conditions.

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 is not conditioned on the consummation of the Acquisition. The Notes will be 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 will initially be 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 will be offered 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

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SOURCE Columbus McKinnon Corporation

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much is Columbus McKinnon (CMCO) offering in senior secured notes on January 20, 2026?

Columbus McKinnon announced an offering of $1,225.0 million aggregate principal amount of senior secured notes due 2033.

What will Columbus McKinnon (CMCO) use the proceeds from the $1,225M notes to fund?

The company intends to use net proceeds to finance the acquisition of Kito Crosby, repay Kito Crosby's existing debt, refinance certain company indebtedness, and pay related fees and expenses.

Are the CMCO notes immediately secured and guaranteed after issuance?

No. The Notes will be initially unsecured and not guaranteed; they will become secured and guaranteed by certain U.S. subsidiaries only after the Acquisition closes.

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

The Notes include a special mandatory redemption if the Acquisition does not occur on or before August 10, 2026 (or any extended End Date).

Who can buy Columbus McKinnon's (CMCO) offered notes under the January 20, 2026 announcement?

The Notes are offered only to persons reasonably believed to be qualified institutional buyers under Rule 144A, to non-U.S. persons in offshore transactions under Regulation S, and to certain institutional accredited investors under Regulation D.

Is the offering of CMCO notes conditioned on the completion of the Kito Crosby acquisition?

No. The offering is not conditioned on consummation of the Acquisition, though the Notes' security and guarantees change if the Acquisition closes.