German construction sector still in recession, civil engineering only bright spot
CHICAGO - JBT Marel Corporation (NYSE and Nasdaq Iceland:JBTM), a $7.26 billion market cap company with annual revenues of $2.71 billion, announced Tuesday it has closed its private offering of $575 million in convertible senior notes due 2030, with a 0.375 percent interest rate. The offering includes $75 million in additional notes issued after initial purchasers fully exercised their option.
The company used the proceeds to execute convertible note hedge and warrant transactions and to repay a portion of its revolving credit facility borrowings. JBT Marel plans to use its credit facility or cash reserves to repay its existing 0.25 percent convertible senior notes due 2026. According to InvestingPro data, the company operates with a moderate level of debt, with a debt-to-equity ratio of 0.44.
"We are pleased to complete the closing of our senior convertible notes transaction, as we took advantage of the robust convertible market and its low borrowing costs," said Matt Meister, Chief Financial Officer. Meister noted the 37.5 basis point coupon rate is expected to generate "meaningful annual interest expense savings" compared to traditional high-yield notes. The company’s strong financial management is reflected in its impressive 63.57% stock return over the past year, though current valuations suggest the stock may be trading above its Fair Value.
The company stated that by executing corresponding hedge and warrant transactions, it has effectively mitigated shareholder dilution until the JBTM share price reaches $283.42 per share.
The notes were offered only to qualified institutional buyers under Rule 144A of the Securities Act of 1933. The securities have not been registered under the Securities Act and cannot be sold in the United States without registration or an applicable exemption.
JBT Marel Corporation operates as a technology solutions provider to the food and beverage industry, with operations in more than 30 countries. The company was formed through the combination of JBT and Marel organizations. InvestingPro analysis reveals several positive indicators, including expected sales growth and net income improvement for the current year. Discover 8 more exclusive ProTips and comprehensive financial analysis in the Pro Research Report, available to InvestingPro subscribers.
This article is based on a press release statement from JBT Marel Corporation.
In other recent news, JBT Marel Corporation reported strong second-quarter earnings for 2025, with adjusted earnings per share reaching $1.49, surpassing the forecasted $1.27. The company’s revenue also exceeded expectations, totaling $935 million compared to the anticipated $816.44 million, resulting in a revenue surprise of 14.5%. In addition to these positive earnings results, JBT Marel announced the pricing of a $500 million convertible senior notes offering at a 0.375% interest rate, with an option for initial purchasers to buy an additional $75 million in notes. This offering is expected to close on September 9, 2025. Furthermore, William Blair upgraded JBT Marel’s stock rating to Outperform, citing strong second-quarter results and improved confidence in the company’s acquisition integration. The upgrade addresses previous concerns about deteriorating fundamentals in certain segments and limited financial disclosure. These recent developments reflect a positive trajectory for JBT Marel as it continues to navigate the market.
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