Columbus McKinnon Announces Pricing of Senior Secured Notes

Rhea-AI Summary

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

The offering size was downsized from $1,225.0 million to $900.0 million and is expected to close on January 30, 2026, subject to customary conditions. Proceeds, together with preferred-share proceeds to CD&R and a New Credit Agreement, will finance the Acquisition, repay Kito Crosby indebtedness, refinance company debt and pay fees. Notes are initially unsecured and will become secured and guaranteed after Acquisition closing; a special redemption applies if the Acquisition does not close by August 10, 2026.

Positive

• $900.0M senior notes priced to fund acquisition
• Fixed coupon at 7.125% provides financing certainty to 2033
• Proceeds earmarked to repay Kito Crosby debt and refinance company debt

Negative

• Offering downsized from $1,225.0M to $900.0M
• Notes are initially unsecured until Acquisition closes
• Special mandatory redemption if Acquisition not closed by Aug 10, 2026

Key Figures

Notes offering size: $900.0 million Original offering size: $1,225.0 million Coupon rate: 7.125% +5 more

8 metrics

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

Original offering size $1,225.0 million Previously announced aggregate principal amount before downsizing

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

Acquisition End Date August 10, 2026 Deadline for Kito Crosby acquisition before special mandatory redemption

Market cap $600,133,372 Equity value prior to notes pricing announcement

Current share price $21.26 Price before news; <b>1.77%</b> up on the day

52-week high $37.81 Shares trading <b>43.77%</b> below this level pre-announcement

52-week low $11.7807 Shares trading <b>80.46%</b> above this level pre-announcement

Market Reality Check

Price: $21.26 Vol: Volume 370,246 vs 20-day ...

normal vol

$21.26 Last Close

Volume Volume 370,246 vs 20-day average 269,445 (relative volume 1.37x). normal

Technical Trading above 200-day MA with price $21.26 vs MA(200) $15.75.

Peers on Argus

CMCO gained 1.77% while peers showed mixed, mostly modest moves (e.g., WNC +1.57...

CMCO gained 1.77% while peers showed mixed, mostly modest moves (e.g., WNC +1.57%, MTW +0.15%, TWI/HY/ASTE slightly negative). No peers appeared in the momentum scanner, suggesting a company-specific reaction.

Historical Context

5 past events · Latest: Jan 20 (Negative)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 20	Debt offering plan	Negative	-3.8%	Announced $1,225M senior secured notes to fund Kito Crosby deal and refinancing.
Jan 14	Prelim Q3 results	Positive	+2.9%	Released strong preliminary Q3 sales, EBITDA and EPS ranges excluding acquisitions.
Jan 14	Acquisition/divestiture	Positive	+2.9%	Outlined Kito Crosby acquisition progress and divestiture with debt-reduction plans.
Nov 05	Conference appearance	Neutral	-0.9%	Announced participation in Baird Global Industrial Conference and webcast details.
Oct 30	Earnings and guidance	Positive	+15.3%	Reported 8% sales growth, improved profitability and reaffirmed FY26 guidance.

Pattern Detected

Recent CMCO news has generally seen price moves align with the perceived tone: positive earnings/acquisition updates drew gains, while the earlier larger notes offering coincided with a decline.

Recent Company History

Over the last few months, CMCO has combined growth initiatives with active balance sheet management. Earnings updates on Oct 30, 2025 and preliminary Q3 figures on Jan 14, 2026 highlighted sales growth, solid Adjusted EBITDA, and reaffirmed guidance, with shares reacting positively. Strategic work on the pending Kito Crosby acquisition and a planned divestiture has been paired with debt financing plans, including the senior notes offerings announced on Jan 20, 2026. Today’s pricing and downsizing of the notes links directly to that financing trajectory.

Market Pulse Summary

This announcement prices CMCO’s 7.125% senior secured notes due 2033 at an aggregate principal amoun...

Analysis

This announcement prices CMCO’s 7.125% senior secured notes due 2033 at an aggregate principal amount of $900.0 million, reduced from the previously planned $1,225.0 million. The proceeds are earmarked to finance the pending Kito Crosby acquisition, repay existing indebtedness, and cover related fees. Historically, CMCO’s stock has reacted positively to operational and acquisition updates but pulled back on the initial, larger notes plan, so investors may watch leverage, closing of the deal before August 10, 2026, and integration progress.

Key Terms

senior secured notes, special mandatory redemption, rule 144a, regulation s, +2 more

6 terms

senior secured notes financial

"it has priced 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 will be subject to a special mandatory redemption in the event that (i) the consummation of the Acquisition does not occur"

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

"institutional 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

"will be 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.

AI-generated analysis. Not financial advice.

CHARLOTTE, N.C., Jan. 22, 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 priced 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"). The aggregate size of the offering has been downsized from $1,225.0 million to $900.0 million. The offering is expected to close on January 30, 2026, subject to the satisfaction of customary closing 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

What did Columbus McKinnon (CMCO) announce on January 23, 2026 about debt financing?

CMCO priced $900.0M of 7.125% senior secured notes due 2033, expected to close on Jan 30, 2026.

Why is CMCO issuing the 7.125% senior secured notes due 2033?

Net proceeds will finance the Kito Crosby acquisition, repay Kito Crosby indebtedness, refinance company debt and pay related fees.

How did the note offering size change for CMCO's financing?

The aggregate offering was downsized from $1,225.0M to $900.0M.

When will the CMCO notes become secured and guaranteed by subsidiaries?

The notes are initially unsecured and will become secured and unconditionally guaranteed by certain U.S. subsidiaries following Acquisition closing.

What happens to CMCO's notes if the Acquisition doesn't close by the End Date?

The notes are subject to a special mandatory redemption if the Acquisition does not occur on or before Aug 10, 2026.

Who can be offered CMCO's notes under the Securities Act exemptions?

The notes will be offered to qualified institutional buyers under Rule 144A, non-U.S. persons offshore under Regulation S, and certain institutional accredited investors under Regulation D.