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The Manitowoc Company, Inc. Announces Pricing of $300 Million of Senior Secured Second Lien Notes due 2031

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The Manitowoc Company (NYSE: MTW) has announced the pricing of its private offering of $300 million in senior secured second lien notes due 2031. The notes will have an interest rate of 9.250% per annum and are being issued at 100% of face value. The offering is expected to close on September 19, 2024, subject to market conditions and the company entering into an amended asset-based revolving credit facility.

Manitowoc anticipates net proceeds of approximately $295.5 million from the offering, which it plans to use to redeem all outstanding 9.00% Senior Secured Second Lien Notes due 2026 and pay related fees. The notes will be sold to qualified institutional buyers and non-U.S. persons under Rule 144A and Regulation S, respectively. They have not been registered under the Securities Act and may not be offered or sold in the U.S. without registration or an applicable exemption.

The Manitowoc Company (NYSE: MTW) ha annunciato il prezzo dell'offerta privata di 300 milioni di dollari in obbligazioni senior garantite di secondo grado con scadenza nel 2031. Le obbligazioni avranno un tasso di interesse del 9,250% annuo e saranno emesse al 100% del valore nominale. Si prevede che l'offerta si chiuda il 19 settembre 2024, soggetta alle condizioni di mercato e all'ingresso della società in un credito rotativo garantito modificato.

Manitowoc prevede ricavi netti di circa 295,5 milioni di dollari dall'offerta, che intende utilizzare per riscattare tutte le obbligazioni senior garantite di secondo grado scadenti nel 2026 con un tasso del 9,00% e per pagare le spese correlate. Le obbligazioni saranno vendute a compratori istituzionali qualificati e a persone non statunitensi secondo la Regola 144A e il Regolamento S, rispettivamente. Non sono state registrate ai sensi della Securities Act e non possono essere offerte o vendute negli Stati Uniti senza registrazione o un'adeguata esenzione.

La compañía Manitowoc (NYSE: MTW) ha anunciado el precio de su oferta privada de 300 millones de dólares en notas senior garantizadas de segundo gravamen a vencer en 2031. Las notas tendrán una tasa de interés del 9.250% anual y se emitirán al 100% de su valor nominal. Se espera que la oferta se cierre el 19 de septiembre de 2024, sujeta a condiciones del mercado y a que la compañía entre en una instalación de crédito revolving garantizado enmendada.

Manitowoc anticipa ingresos netos de aproximadamente 295,5 millones de dólares de la oferta, que planea utilizar para redimir todas las notas senior garantizadas de segundo gravamen con un interés del 9,00% que vencen en 2026 y pagar los honorarios relacionados. Las notas se venderán a compradores institucionales calificados y personas no estadounidenses bajo la Regla 144A y la Regulación S, respectivamente. No han sido registradas bajo la Ley de Valores y no pueden ofrecerse ni venderse en EE. UU. sin registro o una exención aplicable.

마니토워크 컴퍼니 (NYSE: MTW)가 2031년 만기의 3억 달러 규모의 고위험 채권(세컨드 리언) 사모 발행 가격을 발표했습니다. 이 채권은 연 9.250%의 이자율을 가지고 있으며, 액면가 100%로 발행될 예정입니다. 이번 발행은 2024년 9월 19일에 마감될 것으로 예상되며, 시장 상황과 회사가 수정된 자산 기반 회전 신용 시설에 들어가는 것을 조건으로 합니다.

마니토워크는 이번 발행을 통해 약 2억 9천5백만 달러의 순 수익을 예상하고 있으며, 이를 사용하여 2026년 만기 9.00% 고위험 채권을 모두 상환하고 관련 수수료를 지불할 계획입니다. 이 채권은 적격 기관 투자자 및 비미국인에게 각각 144A 규정 및 S 규정에 따라 판매됩니다. 이 채권은 증권법에 따라 등록되지 않았으며, 등록 또는 적절한 면제 없이 미국에서 제공되거나 판매될 수 없습니다.

La Manitowoc Company (NYSE: MTW) a annoncé la tarification de son offre privée de 300 millions de dollars en obligations seniors sécurisées de second rang arrivant à échéance en 2031. Les obligations auront un taux d'intérêt de 9,250% par an et seront émises à 100% de la valeur nominale. L'offre devrait se clôturer le 19 septembre 2024, sous réserve des conditions de marché et d'un contrat d'un crédit revolving adossé modifié par la société.

Manitowoc prévoit des produits nets d'environ 295,5 millions de dollars issus de l'offre, qu'elle prévoit d'utiliser pour racheter toutes les obligations seniors sécurisées de second rang arrivant à échéance en 2026 à un taux de 9,00% et pour payer les frais associés. Les obligations seront vendues à des investisseurs institutionnels qualifiés et à des personnes non américaines en vertu de la règle 144A et de la réglementation S, respectivement. Elles n'ont pas été enregistrées en vertu de la loi sur les valeurs mobilières et ne peuvent pas être proposées ou vendues aux États-Unis sans enregistrement ou une exemption applicable.

Die Manitowoc Company (NYSE: MTW) hat die Preisgestaltung für ihr privates Angebot von 300 Millionen US-Dollar an senior gesicherten zweiten Pfandbriefen mit Fälligkeit im Jahr 2031 bekannt gegeben. Die Anleihen haben einen Zinssatz von 9,250% pro Jahr und werden zu 100% des Nennwerts ausgegeben. Es wird erwartet, dass das Angebot am 19. September 2024 abgeschlossen wird, vorbehaltlich der Marktbedingungen und der Aufnahme einer geänderten aktienbasierten revolvierenden Kreditfazilität durch das Unternehmen.

Manitowoc anticipiert Nettoerlöse von etwa 295,5 Millionen US-Dollar aus dem Angebot, die verwendet werden sollen, um alle ausstehenden 9,00% Senior Secured Second Lien Notes mit Fälligkeit 2026 einzulösen und damit verbundene Gebühren zu zahlen. Die Anleihen werden an qualifizierte institutionelle Käufer und Personen außerhalb der USA gemäß Regel 144A und Regulierung S verkauft. Sie wurden nicht nach dem Wertpapierrecht registriert und dürfen in den USA ohne Registrierung oder anwendbare Befreiung nicht angeboten oder verkauft werden.

Positive
  • Successful pricing of $300 million senior secured second lien notes
  • Increased revolving credit facility commitments by $50 million to $325 million
  • Net proceeds of approximately $295.5 million from the offering
Negative
  • High interest rate of 9.250% per annum on the new notes
  • Potential increase in long-term debt obligations

Insights

Manitowoc's $300 million senior secured second lien notes offering at 9.250% interest rate is a strategic move to refinance existing debt. The new notes, priced at par, will replace the outstanding 9.00% notes due 2026, potentially extending the company's debt maturity profile. While the slightly higher interest rate might increase interest expenses, the expanded $325 million ABL facility could provide additional liquidity. This refinancing, coupled with the increased credit line, suggests Manitowoc is proactively managing its capital structure, which could be viewed positively by investors. However, the company's need for high-yield debt indicates ongoing financial challenges in the competitive construction equipment market.

This refinancing move by Manitowoc comes amid a challenging macroeconomic environment for the construction equipment industry. The company's ability to secure this offering suggests investor confidence in its business model, despite sector headwinds. The 9.250% interest rate, while high, reflects current market conditions and Manitowoc's risk profile. The expanded ABL facility could provide additional operational flexibility, potentially allowing Manitowoc to navigate market uncertainties more effectively. However, investors should monitor how efficiently the company utilizes this increased liquidity to drive growth and improve its competitive position in a market facing potential slowdowns due to economic uncertainties and rising interest rates.

The structured nature of this offering, including the second lien security and subsidiary guarantees, provides additional protection for noteholders. This could be viewed favorably by institutional investors. The use of Rule 144A and Regulation S for the offering is standard practice for such transactions, ensuring compliance with securities regulations. The careful wording regarding the redemption of existing notes and the conditional nature of the offering demonstrates prudent legal risk management. Investors should note that these unregistered securities have transferability, which could affect liquidity. The company's transparency about the offering's terms and use of proceeds aligns with best practices in corporate governance and disclosure.

MILWAUKEE--(BUSINESS WIRE)-- The Manitowoc Company, Inc. (NYSE: MTW) (“Manitowoc”) announced today that it has priced its previously announced private offering (the “Offering”) of $300 million aggregate principal amount of senior secured second lien notes due 2031 (the “Notes”). The Notes will have an interest rate of 9.250% per annum and are being issued at a price equal to 100.000% of their face value. The Notes will be guaranteed on a senior secured second lien basis, jointly and severally, by each of Manitowoc’s domestic subsidiaries that will continue to guarantee Manitowoc’s asset-based revolving credit facility that will among other things increase the commitments by $50 million to $325 million (as amended, the “Amended ABL Credit Facility”). The Offering is expected to close on September 19, 2024, subject to market and other conditions, including Manitowoc entering into the Amended ABL Credit Facility. There can be no assurance that the Offering or the Amended ABL Credit Facility will be completed on a timely basis, or at all.

Manitowoc expects its net proceeds from the Offering, after deducting discounts and commissions and estimated offering expenses payable by Manitowoc, to be approximately $295.5 million. Manitowoc intends to use the net proceeds from the Offering, together with other cash on hand as necessary, to (i) redeem all of its outstanding 9.00% Senior Secured Second Lien Notes due 2026 (the “Existing Notes”); and (ii) pay related fees and expenses.

The Notes will be sold to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A and outside the United States to certain non-U.S. persons in reliance on Regulation S. The Notes and related guarantees have not been, and will not be, registered under the Securities Act of 1933, as amended (the “Securities Act”), any state securities laws or the securities laws of any other jurisdiction and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

This press release shall not constitute an offer to sell, or a solicitation of an offer to buy, the Notes or any other securities and shall not constitute an offer to sell, or a solicitation of an offer to buy, or a sale of, the Notes or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful. This press release is not an offer to purchase or a solicitation of an offer to sell the Existing Notes and does not constitute a redemption notice for the Existing Notes.

Forward-Looking Statements

This press release includes “forward-looking statements” intended to qualify for the safe harbor from liability under the Private Securities Litigation Reform Act of 1995. Any statements contained in this press release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, which include, but are not limited to, statements regarding the Offering and the timing of the closing of the Offering and the anticipated use of proceeds therefrom, are based on the current expectations of the management of Manitowoc and are subject to uncertainty and changes in circumstances. Forward-looking statements include, without limitation, statements typically containing words such as “intends,” “expects,” “anticipates,” “targets,” “estimates,” and words of similar import. By their nature, forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results and developments to differ materially include, among others:

  • Macroeconomic conditions, including inflation, high interest rates and recessionary concerns, as well as continuing global supply chain constraints, labor constraints, logistics constraints and cost pressures such as changes in raw material and commodity costs, have had, and may continue to have, a negative impact on Manitowoc’s ability to convert backlog into revenue which could, and has, impacted its financial condition, cash flows, and results of operations (including future uncertain impacts);
  • actions of competitors;
  • changes in economic or industry conditions generally or in the markets served by Manitowoc;
  • geopolitical events, including the ongoing conflicts in Ukraine and in the Middle East, other political and economic conditions and risks and other geographic factors, has had and may continue to lead to market disruptions, including volatility in commodity prices (including oil and gas), raw material and component costs, energy prices, inflation, consumer behavior, supply chain, and credit and capital markets, and could result in the impairment of assets;
  • changes in customer demand, including changes in global demand for high-capacity lifting equipment, changes in demand for lifting equipment in emerging economies and changes in demand for used lifting equipment including changes in government approval and funding of projects;
  • the ability to convert backlog, orders and order activity into sales and the timing of those sales;
  • failure to comply with regulatory requirements related to the products and aftermarket services Manitowoc sells;
  • the ability to capitalize on key strategic opportunities and the ability to implement Manitowoc’s long-term initiatives;
  • impairment of goodwill and/or intangible assets;
  • changes in revenues, margins and costs;
  • the ability to increase operational efficiencies across Manitowoc and to capitalize on those efficiencies;
  • the ability to generate cash and manage working capital consistent with Manitowoc’s stated goals;
  • work stoppages, labor negotiations, labor rates and labor costs;
  • Manitowoc’s ability to attract and retain qualified personnel;
  • changes in the capital and financial markets;
  • the ability to complete and appropriately integrate acquisitions, strategic alliances, joint ventures or other significant transactions;
  • issues associated with the availability and viability of suppliers;
  • the ability to significantly improve profitability;
  • realization of anticipated earnings enhancements, cost savings, strategic options and other synergies, and the anticipated timing to realize those savings, synergies and options;
  • the ability to focus on customers, new technologies and innovation;
  • uncertainties associated with new product introductions, the successful development and market acceptance of new and innovative products that drive growth;
  • the replacement cycle of technologically obsolete products;
  • risks associated with high debt leverage;
  • foreign currency fluctuation and its impact on reported results;
  • the ability of Manitowoc's customers to receive financing;
  • risks associated with data security and technological systems and protections;
  • the ability to direct resources to those areas that will deliver the highest returns;
  • risks associated with manufacturing or design defects;
  • natural disasters, other weather events, pandemics and other public health crises disrupting commerce in one or more regions of the world;
  • issues relating to the ability to timely and effectively execute on manufacturing strategies, general efficiencies and capacity utilization of Manitowoc’s facilities;
  • the ability to focus and capitalize on product and service quality and reliability;
  • issues associated with the quality of materials, components and products sourced from third parties and the ability to successfully resolve those issues;
  • issues related to workforce reductions and potential subsequent rehiring;
  • changes in laws throughout the world, including governmental regulations on climate change;
  • the inability to defend against potential infringement claims on intellectual property rights;
  • the ability to sell products and services through distributors and other third parties;
  • issues affecting the effective tax rate for the year;
  • acts of terrorism; and
  • other risks and factors detailed in Manitowoc's 2023 Annual Report on Form 10-K and its other filings with the United States Securities and Exchange Commission (the “SEC”).

Manitowoc undertakes no obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements only speak as of the date on which they are made. Information on the potential factors that could affect Manitowoc’s actual results of operations is included in its filings with the SEC, including but not limited to its Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

Ion Warner

SVP, Marketing and Investor Relations

+1 414-760-4805

Source: The Manitowoc Company, Inc.

FAQ

What is the interest rate on Manitowoc's (MTW) new senior secured second lien notes?

The interest rate on Manitowoc's new senior secured second lien notes due 2031 is 9.250% per annum.

When is the expected closing date for Manitowoc's (MTW) $300 million notes offering?

The offering is expected to close on September 19, 2024, subject to market conditions and other factors.

How much are the net proceeds from Manitowoc's (MTW) notes offering?

Manitowoc expects net proceeds of approximately $295.5 million from the offering, after deducting discounts, commissions, and estimated offering expenses.

What will Manitowoc (MTW) use the proceeds from the notes offering for?

Manitowoc intends to use the net proceeds to redeem all of its outstanding 9.00% Senior Secured Second Lien Notes due 2026 and pay related fees and expenses.

The Manitowoc Company, Inc.

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