Kewaunee Scientific Announces Successful Debt Refinancing and Full Repayment of Seller Notes From the Company's Acquisition of Nu Aire, Inc.

Rhea-AI Summary

Kewaunee Scientific (NASDAQ: KEQU) announced on Dec 4, 2025 that it fully repaid its Seller Notes tied to the Nu Aire acquisition. The Seller Notes had an original principal of $23.0 million and were scheduled to mature Nov 1, 2027. Repayment was funded via an amendment to the Nov 1, 2024 loan agreement with PNC, which provided a $10.0 million term loan and permitted use of available revolving credit.

The company said the transactions lower overall debt, reduce the effective interest rate, and materially cut expected future interest expense while supporting strategic growth plans.

Positive

• $23.0M Seller Notes repaid in full ahead of maturity
• PNC amendment provided a $10.0M term loan
• Company expects lower effective interest rate and interest expense

Negative

• Partial repayment funded by drawing on the active revolving credit
• New $10.0M term loan increases formal indebtedness

Key Figures

Seller Notes principal $23.0 million Original outstanding principal tied to Nu Aire acquisition

Seller Notes maturity November 1, 2027 Original maturity date before early full repayment

Additional term loan $10.0 million New term loan from PNC to partially fund repayment

Loan Agreement date November 1, 2024 Date of PNC Loan Agreement and Nu Aire acquisition link

Kewaunee founded 1906 Company founding year cited in overview

Nu Aire founded 1971 Nu Aire founding year cited in subsidiary profile

Market Reality Check

$39.00 Last Close

Volume Volume 1,788 vs 20-day average 12,079 (relative volume 0.15x) shows trading was very quiet before this refinancing news. low

Technical Shares traded below the 200-day MA, with price at 39.00 versus MA(200) at 45.22 ahead of the announcement.

Peers on Argus

Sector peers showed mixed moves: VIRC, BSET, and PRPL were up, while HOFT and NVFY were down. With no peers in the momentum scanner and KEQU nearly flat (-0.16%), today’s refinancing news appears company-specific rather than part of a broad sector rotation.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 26	Earnings date notice	Neutral	-3.0%	Announced upcoming Q2 FY2026 results release date and logistics.
Sep 11	Board appointment	Neutral	-1.6%	Added experienced executive J. Jette Campbell to board of directors.
Sep 10	Earnings report	Positive	-21.2%	Reported strong Q1 FY2026 growth in sales, earnings, and backlog.
Sep 02	Conference attendance	Neutral	-2.3%	Announced participation in 2025 Arablab tradeshow showcasing full portfolio.
Aug 27	Earnings date notice	Neutral	+3.3%	Scheduled Q1 FY2026 earnings release and highlighted global operations.

Pattern Detected

Recent history shows several neutral or positive corporate updates followed by negative next-day moves, including a sharp selloff after strong Q1 FY2026 earnings, indicating a tendency toward weak price reactions even on good news.

Recent Company History

Over the last six months, Kewaunee reported strong Q1 FY2026 results with sales of $71.1M and an expanded $205.0M backlog, yet the stock fell about 21% the next day. Conference and scheduling announcements in August–September 2025 also saw modest declines. Governance was bolstered with a new director appointment on Sep 11, 2025. Today’s refinancing and early repayment of Nu Aire-related seller notes builds on that acquisition-driven growth story while emphasizing balance sheet improvement.

Regulatory & Risk Context

Short Interest

1.88%

0% 15% 30%+

low

Short interest at 1.88% of float with days to cover at 11.41 is categorized as low in the provided risk data, suggesting limited short-driven amplification of moves around this refinancing event.

Market Pulse Summary

This announcement centers on Kewaunee’s early, full repayment of $23.0M in seller notes from the Nu Aire acquisition, partly funded by a new $10.0M term loan and use of its revolving credit line. Management highlights a lower overall debt load and reduced interest expense. In context of prior strong Q1 FY2026 results and ongoing Nu Aire integration, investors may watch future filings and interest-cost trends to assess long-term balance sheet benefits.

Key Terms

seller notes financial

"successfully repaid in full and ahead of schedule its Seller Notes, entered into November 1, 2024"

Seller notes are informal or formal messages from a seller to potential buyers that highlight key features, benefits, or important details about a product or service. They help buyers understand what makes the offering appealing or unique, influencing their decision to purchase. For investors, seller notes can signal how a seller presents their assets, which may impact the perceived value or attractiveness of an investment.

term loan financial

"provided for an additional $10.0 million term loan to be used to partially fund"

A term loan is a type of loan that is borrowed for a set period of time, with a fixed schedule for repaying the money, usually in regular payments. It matters to investors because it represents a company's borrowing costs and financial stability; reliable repayment of these loans can indicate strong financial health, while difficulties may signal potential risks.

revolving line of credit financial

"permitted the Company to draw and use available funds under its active revolving line of credit"

A revolving line of credit is a flexible borrowing arrangement that allows a person or business to access funds up to a set limit whenever needed, much like a prepaid card. As money is repaid, it becomes available to borrow again, making it a convenient way to manage cash flow or cover ongoing expenses. Investors pay attention to it because it reflects a company’s ability to access quick funds and manage financial flexibility.

forward-looking statements regulatory

"This press release contains statements that the Company believes to be "forward-looking statements""

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

private securities litigation reform act of 1995 regulatory

"within the meaning of the Private Securities Litigation Reform Act of 1995"

The Private Securities Litigation Reform Act of 1995 is a law designed to make it easier for companies to defend themselves against lawsuits from investors claiming false or misleading information about their investments. It sets rules to prevent frivolous or overly aggressive legal claims, helping to balance protecting investors with avoiding unnecessary legal costs for companies. This law matters to investors because it influences how easily they can pursue or defend against legal actions related to securities.

force majeure regulatory

"natural disasters and other Force Majeure events."

Force majeure is a legal concept that refers to unexpected events beyond anyone’s control, such as natural disasters, war, or severe disruptions, that prevent a party from fulfilling their obligations. It matters to investors because it can delay or cancel agreements, affecting the timing and certainty of financial transactions and obligations. Essentially, it acts as a shield for parties facing unforeseen, uncontrollable problems.

AI-generated analysis. Not financial advice.

STATESVILLE, N.C., Dec. 4, 2025 /PRNewswire/ -- Kewaunee Scientific Corporation (NASDAQ: KEQU), a recognized leader in the design, manufacture, and installation of laboratory, healthcare, and technical furniture products, today announced its successful debt refinancing and the full repayment of its Seller Notes.

On December 4, 2025, Kewaunee Scientific Corporation (the "Company" or "Kewaunee") successfully repaid in full and ahead of schedule its Seller Notes, entered into November 1, 2024, in connection with the Company's acquisition of Nu Aire, Inc. ("Nu Aire"). The Seller Notes had an original outstanding principal balance of $23.0 million and were set to mature on November 1, 2027. This repayment was partially funded by an amendment the Company entered into with PNC Bank, National Association ("PNC") on December 4, 2025, related to the Loan Agreement, dated November 1, 2024, between the Company and PNC. This amendment, among other things, (i) permitted the Company to repay in full the outstanding principal balances of the Seller Notes, (ii) provided for an additional $10.0 million term loan to be used to partially fund the repayment of the Seller Notes, and (iii) permitted the Company to draw and use available funds under its active revolving line of credit established by the November 1, 2024 Loan Agreement to partially fund the repayment of the Seller Notes.

With the successful execution of these transactions, the Company has lowered its overall debt load, reduced the effective interest rate on its debt portfolio, and materially reduced its expected future interest expense.

"Kewaunee's decision to repay our Seller Notes early and in full reflects the Company's commitment to thoughtful capital allocation and disciplined decision-making," said Donald T. Gardner III, Vice President and Chief Financial Officer of Kewaunee. "Our ability to fully repay the Seller Notes well before their maturity date has been enabled by the consistent financial performance of our legacy business, accretive financial contribution from the Nu Aire business, and disciplined cash management."

"We are confident that the strategies we are employing are best for the long-term health of our business. The flexibility achieved through this refinancing positions us well as we execute our key strategic initiatives to drive future organic and inorganic growth, which will generate value for our shareholders."

About Kewaunee Scientific

Founded in 1906, Kewaunee Scientific Corporation is a recognized global leader in the design, manufacture, and installation of laboratory, healthcare, and technical furniture products. The Company's products include steel and wood casework, fume hoods, adaptable modular systems, moveable workstations, stand-alone benches, biological safety cabinets, and epoxy resin work surfaces and sinks. The Company's corporate headquarters are located in Statesville, North Carolina. Sales offices are located in the United States, India, Saudi Arabia, and Singapore. Three manufacturing facilities are located in Statesville serving the domestic and international markets, and one manufacturing facility is located in Bangalore, India serving the local, Asian, and African markets. 

Kewaunee Scientific's newly acquired subsidiary, Nu Aire, is a leading manufacturer of biological safety cabinets, CO2 incubators, ultralow freezers, and other essential laboratory products that complement the Kewaunee Scientific portfolio. Founded in 1971, Nu Aire's headquarters and manufacturing facilities are located in Plymouth, Minnesota, with additional manufacturing capabilities located in Long Lake, Minnesota. The Company also maintains a warehouse partnership in the Netherlands and OEM partnerships in China.

Learn more at the companies' websites, located at https://www.kewaunee.com and https://www.nuaire.com. 

This press release contains statements that the Company believes to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release, including statements regarding the Company's future financial condition, results of operations, business operations and business prospects, are forward-looking statements. Words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "predict," "believe" and similar words, expressions and variations of these words and expressions are intended to identify forward-looking statements. Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions, and other important factors that could significantly impact results or achievements expressed or implied by such forward-looking statements. Such factors, risks, uncertainties and assumptions include, but are not limited to: our ability to realize the benefits anticipated as a result of the Nu Aire acquisition; competitive and general economic conditions, including disruptions from government mandates, both domestically and internationally, as well as supplier constraints and other supply disruptions; changes in customer demands; technological changes in our operations or in our industry; dependence on customers' required delivery schedules; risks related to fluctuations in the Company's operating results from quarter to quarter; risks related to international operations, including foreign currency fluctuations; changes in the legal and regulatory environment; changes in raw materials and commodity costs; acts of terrorism, war, governmental action, and natural disasters and other Force Majeure events. The cautionary statements made pursuant to the Reform Act herein and elsewhere by us should not be construed as exhaustive. We cannot always predict what factors would cause actual results to differ materially from those indicated by the forward-looking statements. Over time, our actual results, performance, or achievements will likely differ from the anticipated results, performance or achievements that are expressed or implied by our forward-looking statements, and such difference might be significant and harmful to our stockholders' interest. Many important factors that could cause such a difference are described under the caption "Risk Factors," in Item 1A of our Annual Report on Form 10-K for the most recent fiscal year ended April 30, which you should review carefully, and in our subsequent quarterly reports on Form 10-Q and current reports on Form 8-K. These reports are available on our investor relations website at www.kewaunee.com and on the SEC website at www.sec.gov. These forward-looking statements speak only as of the date of this document. The Company assumes no obligation, and expressly disclaims any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:	Donald T. Gardner III
	704/871-3274

View original content to download multimedia:https://www.prnewswire.com/news-releases/kewaunee-scientific-announces-successful-debt-refinancing-and-full-repayment-of-seller-notes-from-the-companys-acquisition-of-nu-aire-inc-302633594.html

SOURCE Kewaunee Scientific Corporation

FAQ

What did Kewaunee (KEQU) announce on Dec 4, 2025 about its debt?

Kewaunee announced it fully repaid $23.0M of Seller Notes and amended its PNC loan agreement to support repayment.

How was the KEQU Seller Notes repayment funded?

Repayment was funded by a PNC amendment that provided a $10.0M term loan and permission to use available revolving credit.

What impact does the refinancing have on KEQU's interest costs?

The company said the transactions lowered its overall debt and reduced the effective interest rate, materially cutting expected future interest expense.

When did the repaid Seller Notes originally mature for KEQU?

The Seller Notes were set to mature on Nov 1, 2027 but were repaid in full on Dec 4, 2025.

Will the KEQU refinancing affect the Nu Aire acquisition financing?

The repayment relates to Seller Notes issued in connection with the Nu Aire acquisition and was completed ahead of schedule to adjust the company’s capital structure.