Carpenter Technology closes $700 million senior notes offering

PHILADELPHIA - Carpenter Technology Corporation (NYSE:CRS) closed its previously announced $700 million offering of 5.625% senior notes due 2034, the specialty alloy maker announced Thursday. The company, with a market capitalization of $15.2 billion, has seen its stock surge 91.7% year-to-date according to InvestingPro data.

The private offering was made to qualified institutional buyers under Rule 144A and to certain non-U.S. persons under Regulation S of the Securities Act of 1933.

The company plans to use the proceeds, along with cash on hand, to redeem its 6.375% senior notes due 2028 and 7.625% senior notes due 2030, including any accrued interest and premium payments.

Additionally, Carpenter Technology amended its credit agreement to increase revolving commitments from $350 million secured to $500 million unsecured, while expanding the uncommitted accordion feature to allow for up to $650 million in additional revolving commitments or new term loans.

The amendment extends the credit facility’s maturity date to 2030 and modifies certain terms, including interest rates and financial covenant levels.

Founded in 1889, Carpenter Technology produces high-performance specialty alloy materials for critical applications in aerospace, defense, medical, and other markets.

The notes have not been registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption from registration requirements, according to the company’s press release statement.

In other recent news, Carpenter Technology Corporation has announced the pricing of $700 million in senior notes at an interest rate of 5.625%, with the offering expected to close on November 20, 2025. This move is part of the company’s strategy to manage its debt, as proceeds will be used to redeem existing notes and for other corporate purposes. In a related development, Fitch Ratings has upgraded Carpenter Technology’s Long-Term Issuer Default Rating to ’BBB-’ from ’BB+’, marking its entry into investment-grade territory. The company’s senior unsecured debt also received an upgrade to ’BBB-’.

KeyBanc has upgraded Carpenter Technology’s stock rating to Overweight, citing expectations of strong pricing and cost control in its Specialty Alloys Operations segment. BTIG also raised its price target for the company to $365 from $305, maintaining a Buy rating after Carpenter Technology reported record quarterly profits. These developments reflect positive sentiment among analysts regarding Carpenter Technology’s financial health and future prospects.

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