Fortrea launches $75.7 million debt tender offer for senior notes

DURHAM, N.C. - Fortrea (NASDAQ:FTRE) announced Monday it has commenced a debt tender offer to purchase up to $75,744,000 of its outstanding 7.500% Senior Secured Notes due 2030. According to InvestingPro data, the company currently carries a total debt burden of $1.24 billion, with a debt-to-equity ratio of 2.11.

The clinical research organization said the tender offer fulfills requirements under the notes’ indenture following the company’s divestiture of its Fortrea Patient Access and Endpoint Clinical businesses, which was completed in June 2024. The company, currently valued at $858 million by market capitalization, has shown strong momentum with a 78% price return over the past six months, despite challenging market conditions.

The tender offer will expire on November 18, 2025, at 5:00 p.m. New York City time, unless extended or terminated. U.S. Bank Trust Company, National Association is serving as the tender agent.

For each $1,000 principal amount of notes validly tendered and not withdrawn, Fortrea will pay $1,000 in cash plus accrued and unpaid interest. The company plans to fund the tender offer with cash on hand and other liquidity sources.

Notes tendered may be subject to proration if the aggregate purchase price of tendered notes exceeds the maximum amount. Holders can withdraw their tenders at any time prior to the expiration time.

The tender offer is being conducted through DTC’s Automated Tender Offer Program, with no letter of transmittal required. Holders who keep their notes through brokers or other nominees must contact those intermediaries to participate.

Fortrea provides clinical trial management and consulting services across approximately 100 countries. For investors seeking deeper insights, InvestingPro offers comprehensive analysis with 8 additional ProTips and detailed financial metrics in its Pro Research Report. The company stated in its press release that it is not making any recommendation to noteholders regarding whether to tender their notes.

In other recent news, Fortrea Holdings Inc. reported a notable earnings beat for the second quarter of 2025. The company posted earnings per share of $0.19, significantly surpassing the forecasted $0.08. Revenue also exceeded expectations, coming in at $710.3 million compared to the anticipated $631.5 million. Jefferies raised its price target for Fortrea to $7.00 from $5.00, maintaining a Hold rating. This adjustment was attributed to "cleaner income statement items" in the second quarter, with stronger revenue, EBITDA margin, and earnings per share than consensus expectations. Additionally, Fortrea announced the appointment of William Sharbaugh to its Board of Directors. Sharbaugh brings over three decades of experience in the pharmaceutical industry. He is currently the chairman of the board at Ora LLC and serves on the board of Launch Therapeutics, Inc.

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