Mattr Announces Expiration of HSR Act Waiting Period for AmerCable Acquisition and Conversion of Debt Subscription Receipts

Rhea-AI Summary

Mattr Corp. (TSX: MATR) has announced two significant developments: First, the expiration of the HSR Act waiting period for its planned US$280 million acquisition of AmerCable from Nexans USA Inc., with the transaction expected to close around January 2, 2025. Second, following this regulatory approval, the company confirmed the conversion of its previously announced 125,000,000 debt subscription receipts into 7.25% senior unsecured notes due April 2, 2031.

AmerCable specializes in manufacturing engineered electrical power, control, and instrumentation cables for harsh environments, serving critical infrastructure sectors including mineral extraction, renewable power generation, and energy markets. The net proceeds from the debt offering will partially fund the AmerCable acquisition.

Positive

• Secured regulatory approval for US$280M AmerCable acquisition
• Strategic expansion into critical infrastructure markets
• Successfully raised funding through 125M debt subscription receipts
• Acquisition expected to close within planned timeline (Jan 2, 2025)

Negative

• Taking on significant debt with 7.25% interest rate until 2031
• Large acquisition cost of US$280M may impact financial flexibility

TORONTO, Dec. 24, 2024 (GLOBE NEWSWIRE) -- Mattr Corp. (“Mattr” or the “Company”) (TSX: MATR) announced today that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (“HSR Act”), applicable to Mattr’s previously announced agreement to acquire AmerCable Incorporated (“AmerCable”), has expired. With the regulatory approval under the HSR Act secured (“HSR Approval”), Mattr expects the balance of the conditions to closing of this transaction to be achievable within a timeline which will permit completion of the transaction on or about January 2, 2025. Under the terms of the contemplated transaction, upon closing, Mattr will acquire all of the outstanding shares of AmerCable from Nexans USA Inc. (EPA:NEX) for a purchase price of US$280M.

Following receipt of HSR Approval, the Company delivered notice to TSX Trust that the escrow release conditions under the subscription receipt indenture entered into on December 19, 2024 in connection of its previously announced private placement offering (the “Offering”) [see press release] of 125,000,000 debt subscription receipts (the “Subscription Receipts”) have been satisfied. As a result, the net proceeds of the Offering will be released from escrow to the Company and holders of the Subscription Receipts will receive, without payment of additional consideration or further action, a newly authenticated 7.25% senior unsecured note of the Company due April 2, 2031, in a principal amount of $1,000, per 1000 Subscription Receipts held.

The Company intends to utilize the net proceeds of the Offering to fund a portion of the AmerCable acquisition.

About AmerCable

AmerCable is a manufacturer of highly engineered, low and medium voltage electrical power, control and instrumentation cables designed to reliably enable electrification in harsh environments. AmerCable serves a broad customer base within the critical infrastructure sector, including the mineral extraction, renewable power generation, general industrial and energy end markets.

About Mattr

Mattr is a growth-oriented, global materials technology company broadly serving critical infrastructure markets, including transportation, communication, water management, energy and electrification.  Its two business segments, Composite Technologies and Connection Technologies, enable responsible renewal and enhancement of critical infrastructure while lowering risk.

For further information, please contact

Meghan MacEachern
VP, External Communications & ESG
Telephone: 437.341.1848
Email: meghan.maceachern@mattr.com
Website: www.mattr.com

Source: Mattr Corp.

FAQ

What is the purchase price for Mattr's acquisition of AmerCable?

Mattr will acquire AmerCable for US$280 million from Nexans USA Inc.

When is the expected closing date for Mattr's AmerCable acquisition?

The acquisition is expected to close on or about January 2, 2025.

What are the terms of Mattr's debt subscription receipts conversion?

The 125,000,000 subscription receipts will convert into 7.25% senior unsecured notes due April 2, 2031, with a principal amount of $1,000 per 1000 receipts.

What markets does AmerCable serve?

AmerCable serves critical infrastructure sectors including mineral extraction, renewable power generation, general industrial, and energy end markets.

What regulatory approval did Mattr receive for the AmerCable acquisition?

Mattr received approval through the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act (HSR Act).