3D Systems Announces Significant Strengthening of Balance Sheet
Rhea-AI Summary
3D Systems (NYSE:DDD) has announced significant balance sheet improvements through strategic financial transactions. The company has successfully retired $88 million of debt (41% of prior balance) at a discount to par value and refinanced with $92 million in new Convertible Senior Secured Notes due 2030. Additionally, DDD has repurchased 8 million shares (approximately 6% of outstanding common stock) to reduce dilution.
Following these transactions, DDD's balance sheet will include $35 million in existing notes due 2026, $92 million in new notes due 2030, and approximately $140 million in cash reserves. The new notes will bear interest at 5.875% per annum and are convertible at a 20% premium to the June 17, 2025 closing price.
Positive
- Retirement of $88 million in debt (41% of prior balance) at a favorable 94.6% of par value
- Extension of debt maturity to 2030 through refinancing
- Strategic repurchase of 8 million shares (6% of outstanding stock) reduces dilution
- Maintenance of strong cash position with $140 million in reserves
- Expected recognition of $10 million gain in Q2 financial statements
- Total debt reduction of 72% since 2021 through opportunistic transactions
Negative
- New notes carry 5.875% interest rate compared to 0% on existing notes
- Potential future dilution from convertible notes at 20% premium to current stock price
News Market Reaction
On the day this news was published, DDD declined 3.47%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
- Transactions permanently retire approximately
$88 million of debt,41% of prior balance, at a meaningful discount to par - Refinancing extends maturity with issuance of
$92 million Convertible Senior Secured Notes due 2030 - Repurchase of 8 million shares, representing approximately
6% of the Company’s outstanding common stock, in connection with the transaction reduces dilution for equity holders - Strong remaining cash reserves support completion of restructuring efforts while maintaining continuity in key growth initiatives
ROCK HILL, S.C., June 24, 2025 (GLOBE NEWSWIRE) -- Today, 3D Systems (NYSE: DDD) announced the closing of a series of strategic transactions to retire/refinance its outstanding 2026 convertible notes and repurchase shares of its common stock. The Company completed separate, privately negotiated agreements with a limited number of qualified institutional buyers to:
- Repurchase approximately
$180 million in aggregate principal amount of its outstanding0% Convertible Senior Notes due November 15, 2026 (the “Existing Notes”) at a price of94.6% of par, and - Issue
$92 million aggregate principal amount of new5.875% Convertible Senior Secured Notes due 2030 (the “New Notes”).
In connection with these transactions, the Company has repurchased approximately 8 million shares of its common stock concurrently with the closing of the New Notes issuance. The repurchase represents approximately
Following closing of these transactions, the Company’s balance sheet will reflect:
- Approximately
$35 million principal amount of the Existing Notes, due in November, 2026; - Approximately
$92 million principal amount of the New Notes due in 2030; and - Approximately
$140 million of cash to support debt obligations, restructuring activities and ongoing investment in key growth initiatives.
The New Notes will mature on June 15, 2030, unless earlier converted, redeemed, or repurchased, and will bear interest at a rate of
In connection with the repurchase of the Existing Notes at a discount to par, the Company expects to recognize a gain of approximately
Dr. Jeffrey Graves, president and CEO of 3D Systems said, “We are pleased to announce the successful completion of these refinancing transactions, which mark an important step in the continued strengthening of our capital structure. Aided by our strong cash position, the transactions immediately reduce our overall outstanding debt at an attractive discount, significantly extending our debt maturity profile, while managing potential dilution through a simultaneous share repurchase. These transactions follow those of prior periods that have reduced our total debt by over
This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities (including the shares of common stock, if any, into which the notes are convertible in certain circumstances), nor shall there be any offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under applicable securities laws.
The offer and sale of the notes and any shares of common stock issuable upon conversion of the notes have not been registered under the Securities Act of 1933, as amended, or qualified under any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration or qualification requirements.
Advisors
Cantor Fitzgerald & Co. acted as Financial Advisor and Sole Placement Agent of the New Notes to 3D Systems.
Goodwin Procter LLP served as legal counsel to Cantor Fitzgerald.
McGuireWoods LLP served as legal counsel to 3D Systems.
Forward-Looking Statements
Certain statements made in this release that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from historical results or from any future results or projections expressed or implied by such forward-looking statements. In many cases, forward-looking statements can be identified by terms such as "believes," "belief," "expects," "may," "will," "estimates," "intends," "anticipates" or "plans" or the negative of these terms or other comparable terminology. Forward-looking statements are based upon management’s beliefs, assumptions, and current expectations and may include comments as to the Company’s beliefs and expectations as to future events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside the control of the Company. The factors described under the headings "Forward-Looking Statements" and "Risk Factors" in the Company’s periodic filings with the Securities and Exchange Commission, as well as other factors, could cause actual results to differ materially from those reflected or predicted in forward-looking statements. Although management believes that the expectations reflected in the forward-looking statements are reasonable, forward-looking statements are not, and should not be relied upon as a guarantee of future performance or results, nor will they necessarily prove to be accurate indications of the times at which such performance or results will be achieved. The forward-looking statements included are made only as of the date of the statement. 3D Systems undertakes no obligation to update or review any forward-looking statements made by management or on its behalf, whether as a result of future developments, subsequent events or circumstances or otherwise, except as required by law.
About 3D Systems
Nearly 40 years ago, Chuck Hull’s curiosity and desire to improve the way products were designed and manufactured gave birth to 3D printing, 3D Systems, and the additive manufacturing industry. Since then, that same spark continues to ignite the 3D Systems team as we work side-by-side with our customers to change the way industries innovate. As a full-service solutions partner, we deliver industry-leading 3D printing technologies, materials and software to high-value markets such as medical and dental; aerospace, space and defense; transportation and motorsports; AI infrastructure; and durable goods. Each application-specific solution is powered by the expertise and passion of our employees who endeavor to achieve our shared goal of Transforming Manufacturing for a Better Future. More information on the Company is available at www.3dsystems.com.
Investor Contact: investor.relations@3dsystems.com
Media Contact: press@3dsystems.com
FAQ
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