Carpenter Technology prices $700 million in senior notes at 5.625%

PHILADELPHIA - Carpenter Technology Corporation (NYSE:CRS) announced Monday it has priced an offering of $700 million aggregate principal amount of 5.625% senior notes due 2034 at par through a private placement to qualified institutional buyers. The specialty alloy producer, currently valued at $16.36 billion, has seen its stock surge nearly 94% year-to-date according to InvestingPro data.

The offering is expected to close on November 20, 2025, subject to customary closing conditions, according to a company press release.

Carpenter Technology plans to use the net proceeds from the offering, along with cash on hand, to redeem its existing 6.375% senior notes due 2028 and 7.625% senior notes due 2030, including any accrued interest and premium due. Remaining funds will be directed toward general corporate purposes, which may include repayment of other outstanding debt.

The notes were offered under Rule 144A and Regulation S of the Securities Act of 1933 and have not been registered under the Securities Act or securities laws of other jurisdictions.

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

The company noted that this announcement does not constitute a notice of redemption for the existing senior notes due in 2028 and 2030, nor is it an offer to sell or solicitation to buy the newly issued notes in jurisdictions where such offers would be unlawful.

In other recent news, Carpenter Technology Corporation reported impressive financial results for the first quarter of fiscal year 2026, exceeding market expectations. The company achieved an earnings per share of $2.43, surpassing the forecast of $2.12, while its revenue reached $733.7 million, outpacing the anticipated $699.67 million. Additionally, Fitch Ratings upgraded Carpenter Technology's Long-Term Issuer Default Rating to 'BBB-' from 'BB+', moving the company into investment grade territory. The rating agency also upgraded the company's senior unsecured debt to 'BBB-' and affirmed the secured revolving credit facility at the same level.

In another development, Carpenter Technology announced plans for a $700 million senior notes offering due 2034. The proceeds will be used to redeem existing senior notes due in 2028 and 2030 and for general corporate purposes. Furthermore, BTIG raised its price target for Carpenter Technology to $365 from $305, maintaining a Buy rating on the stock. These developments reflect a period of positive momentum for Carpenter Technology as it continues to outperform market expectations.

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