3D Systems retires $88 million debt in strategic refinancing

NEW YORK - 3D Systems (NYSE:DDD), currently valued at $195.75 million in market capitalization, has completed a series of strategic financial transactions that permanently retire approximately $88 million of debt, representing 41% of its prior balance, the company announced Tuesday. According to InvestingPro analysis, the company’s financial health score is currently rated as WEAK, with multiple indicators suggesting careful monitoring is warranted.

The 3D printing technology provider repurchased approximately $180 million in aggregate principal amount of its outstanding 0% Convertible Senior Notes due November 15, 2026, at 94.6% of par value. Simultaneously, the company issued $92 million in new 5.875% Convertible Senior Secured Notes due 2030. With total debt standing at $287.41 million and a current ratio of 2.79, InvestingPro data reveals the company maintains sufficient liquid assets to meet short-term obligations, though deeper analysis available in the Pro Research Report shows important nuances about the company’s debt management strategy.

As part of the transactions, 3D Systems repurchased approximately 8 million shares of its common stock, representing about 6% of its 136.4 million outstanding shares as of May 2.

Following the transactions, the company’s balance sheet will reflect approximately $35 million in principal amount of existing notes due in 2026, $92 million in principal amount of new notes due in 2030, and approximately $140 million in cash reserves. Based on current market conditions and fundamentals, InvestingPro’s Fair Value analysis indicates that 3D Systems appears undervalued, though investors should note that the company faces challenges with cash burn and profitability.

The new notes will mature on June 15, 2030, unless earlier converted, redeemed, or repurchased, and will bear interest at 5.875% per annum, payable semi-annually. They are convertible into common stock at an initial conversion price reflecting a 20% premium to the company’s last reported closing price on June 17.

3D Systems expects to recognize a gain of approximately $10 million in its second-quarter financial statements due to the repurchase of existing notes at a discount to par.

Cantor Fitzgerald & Co. acted as financial advisor and sole placement agent for the new notes, according to the press release statement.

In other recent news, 3D Systems reported its financial results for Q1 2025, revealing a challenging start to the year with earnings per share of -$0.28, which missed the forecasted -$0.14. The company’s revenue also fell short of expectations, coming in at $94.5 million against a forecast of $100.34 million. In response to these results, Craig-Hallum analyst Greg Palm adjusted the price target for 3D Systems shares, lowering it to $2.00 from $2.50, while maintaining a Hold rating. Palm noted the company’s weaker-than-expected results were surprising, given the positive outlook previously provided by management.

3D Systems is actively working on returning to profitability by implementing $20 million in additional cost reductions, aiming for profitability on a quarterly basis by fiscal year 2026. In another strategic move, the company announced plans to issue $92 million in convertible senior secured notes due 2030, with proceeds intended to repurchase a portion of its outstanding debt. The company also plans to use approximately $15 million in cash to repurchase about 8 million shares of its common stock through privately negotiated transactions.

3D Systems has withdrawn its full-year 2025 guidance due to ongoing economic uncertainties, focusing instead on cost reduction initiatives projected to save $70 million by mid-2026. The company is targeting profitability at current revenue levels and is continuing strategic investments in research and development, particularly in high-reliability markets such as aerospace and AI infrastructure. These recent developments reflect the company’s efforts to navigate financial challenges while positioning itself for future growth.

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