Hillenbrand Announces Note Redemption, Amends Credit Agreements

Rhea-AI Summary

Hillenbrand (NYSE: HI) has announced significant changes to its debt structure and credit facilities. The company will fully redeem its $375 million, 4.500% notes that were due September 2026. Additionally, Hillenbrand has successfully amended and extended its syndicated credit agreement, which now includes a $700 million revolving credit facility, a $175 million term loan, and a Euro-denominated delayed-draw term loan up to €240 million.

The company has also amended its €325 million L/G facility agreement. These financial moves are aimed at optimizing Hillenbrand's capital structure and enhancing its operational and financial flexibility.

Positive

• Full redemption of $375 million notes demonstrates strong financial position
• Secured larger credit facilities with $700 million revolving credit facility
• Enhanced financial flexibility through amended credit agreements
• Diversified funding sources with both USD and Euro-denominated facilities

Negative

• Potential increase in interest expenses depending on new facilities' terms
• Taking on new credit facilities could increase overall debt exposure

BATESVILLE, Ind., July 22, 2025 /PRNewswire/ -- Hillenbrand, Inc. (NYSE: HI) (the "Company") today announced the redemption in full of its $375 million, 4.500% notes due September 2026.

The Company also announced the successful amendment and extension of its syndicated credit agreement, which includes a $700 million revolving credit facility, a $175 million term loan, and a Euro-denominated delayed-draw term loan of up to €240 million. JPMorgan Chase Bank, N.A. and J.P. Morgan SE serve as administrative agent under the amended and restated syndicated credit agreement. In addition, the Company announced it has amended its €325 million L/G facility agreement. Commerzbank Aktiengesellschaft serves as coordinator, lead arranger, bookrunner, and agent under the amended L/G facility agreement. 

The redemption, in conjunction with the amendments, marks a significant step in optimizing the Company's capital structure, allowing for greater operational and financial flexibility.

About Hillenbrand

Hillenbrand (NYSE: HI) is a global industrial company that provides highly-engineered, mission-critical processing equipment and solutions to customers around the world. Our portfolio is composed of leading industrial brands that serve large, attractive end markets, including durable plastics, food, and recycling. Guided by our Purpose — Shape What Matters For Tomorrow™ — we pursue excellence, collaboration, and innovation to consistently shape solutions that best serve our people, our customers, and our communities. To learn more, visit: www.Hillenbrand.com.

Forward Looking Statements

Throughout this press release, we make a number of "forward-looking statements," including statements that are within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, and that are intended to be covered by the safe harbor provided under these sections. These are statements about future capital structure, operations, and financial flexibility, and/or, as applicable, future sales, earnings, cash flow, results of operations, uses of cash, financings, share repurchases, ability to meet deleveraging goals, and other measures of financial performance or potential future plans or events, strategies, objectives, beliefs, prospects, assumptions, expectations, and projected costs or savings or transactions of the Company that might or might not happen in the future, as contrasted with historical information. Forward-looking statements are based on assumptions that we believe are reasonable, but by their very nature are subject to a wide range of risks. If our assumptions prove inaccurate or unknown risks and uncertainties materialize, actual results could vary materially from Hillenbrand's expectations and projections.

The following list, though not exhaustive, contains words that indicate a forward-looking statement:

intend	pursue	promise	may	continue
become	encourage	expect	forecast	potential
target	plan	will	progress	Would
believe	estimate	improve	goal	could
should	project	anticipate	impact	position
remain	strategy	future	likely	assume
outlook

Any number of factors, many of which are beyond our control, could cause our performance to differ significantly from what is described in the forward-looking statements. These factors include, but are not limited to: global market and economic conditions, including those related to the continued volatility in the financial markets, including as a result of the United States ("U.S.") presidential election and the new U.S. administration's recently announced tariffs and changed trade policies; the risk of business disruptions associated with information technology, cyber-attacks, or catastrophic losses affecting infrastructure; increasing competition for highly skilled and talented workers, as well as labor shortages; closures or slowdowns and changes in labor costs and labor difficulties; uncertainty related to environmental regulation and industry standards, as well as physical risks of climate change; uncertainty related to environmental regulation; increased costs, poor quality, or unavailability of raw materials or certain outsourced services and supply chain disruptions; economic and financial conditions including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; uncertainty in U.S. global trade policy and risks with governmental instability in certain parts of the world; our level of international sales and operations; negative effects of acquisitions, including the Schenck Process Food and Performance Materials ("FPM") business and Linxis Group SAS ("Linxis") acquisitions, on the Company's business, financial condition, results of operations and financial performance; competition in the industries in which we operate, including on price; cyclical demand for industrial capital goods; the ability to recognize the benefits of any acquisition or divestiture, including the Milacron injection molding and extrusion business sale (the "Transaction"), including potential synergies and cost savings or the failure of the Company or any acquired company, or the Transaction, to achieve its plans and objectives generally; any strategic and operational initiatives implemented by the parties after the consummation of the Transaction; potential adverse effects of the announcement or results of the Transaction on the market price of the Company's common stock or on the ability of the Company to develop and maintain relationships with its personnel and customers, suppliers and others with whom it does business or otherwise on the Company's business, financial condition, results of operations and financial performance; risks related to diversion of management's attention from our ongoing business operations due to the Transaction; impacts of decreases in demand or changes in technological advances, laws, or regulation on the net revenues that we derive from the plastics industry; the impact to the Company's effective tax rate of changes in the mix of earnings or in tax laws and certain other tax-related matters; exposure to tax uncertainties and audits; involvement in claims, lawsuits, and governmental proceedings related to operations; uncertainty in the U.S. political and regulatory environment, including as a result of the U.S. presidential election and any proposed tariffs; adverse foreign currency fluctuations; and labor disruptions.

Shareholders, potential investors, and other readers are urged to consider these risks and uncertainties in evaluating forward-looking statements and are cautioned not to place undue reliance on the forward-looking statements. For a more in-depth discussion of certain factors that could cause actual results to differ from those contained in forward-looking statements, see the discussions under the heading "Risk Factors" in Part I, Item 1A of Hillenbrand's Form 10-K for the year ended September 30, 2024, filed with the SEC on November 19, 2024, and in Part II, Item 1A of Hillenbrand's Form 10-Q for the quarter ended March 31, 2025, filed with the SEC on April 29, 2025. The forward-looking information in this release speaks only as of the date on which it is made. We undertake no obligation to publicly update or revise any forward-looking statement, whether written or oral, made to reflect new information, future developments or otherwise.

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SOURCE Hillenbrand

FAQ

What notes is Hillenbrand (NYSE: HI) redeeming in 2025?

Hillenbrand is redeeming in full its $375 million, 4.500% notes that were due September 2026.

What is the size of Hillenbrand's new revolving credit facility?

Hillenbrand's amended syndicated credit agreement includes a $700 million revolving credit facility.

Who are the administrative agents for Hillenbrand's new credit agreements?

JPMorgan Chase Bank, N.A. and J.P. Morgan SE serve as administrative agents for the syndicated credit agreement, while Commerzbank Aktiengesellschaft serves as coordinator for the L/G facility agreement.

What is the purpose of Hillenbrand's 2025 debt restructuring?

The debt restructuring aims to optimize the company's capital structure and provide greater operational and financial flexibility.

How much is Hillenbrand's new Euro-denominated term loan?

The new credit agreement includes a Euro-denominated delayed-draw term loan of up to €240 million.