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CHICAGO - JBT Marel Corporation (NYSE and Nasdaq Iceland:JBTM), a $7.37 billion market cap company that has delivered an impressive 60.86% return over the past year, announced Thursday it has priced a private offering of $500 million in convertible senior notes due 2030, with a 0.375% interest rate. The company has also granted initial purchasers an option to buy up to an additional $75 million in notes. According to InvestingPro data, the company operates with a moderate level of debt, making this offering a strategic move for its capital structure.
The transaction, which includes related convertible note hedge and warrant transactions, is expected to close on September 9, 2025.
JBT Marel plans to use a portion of the proceeds to pay for the convertible note hedge and warrant transactions, with the remainder going toward repaying outstanding borrowings under its revolving credit facility. The company subsequently intends to refinance its 0.25% convertible senior notes due 2026.
The notes will mature on September 15, 2030, with interest payable semiannually beginning March 15, 2026. The initial conversion rate is 5.3258 shares of common stock per $1,000 principal amount, equivalent to a conversion price of approximately $187.77 per share, representing a 32.5% premium over the company’s last reported stock price of $141.71.
Prior to June 15, 2030, the notes will be convertible only under certain conditions. The company will satisfy conversions through a combination of cash and potentially shares of common stock.
In connection with the offering, JBT Marel has entered into convertible note hedge transactions expected to reduce potential dilution from the notes. Concurrently, the company has entered into warrant transactions with a strike price of $283.42 per share, a 100% premium to the company’s last reported stock price.
The notes are being offered only to qualified institutional buyers under Rule 144A of the Securities Act of 1933, according to the company’s press release statement.
JBT Marel provides technology solutions to the food and beverage industry, with operations in more than 30 countries. While currently trading at high EBITDA multiples, analysts maintain a positive outlook, with three analysts recently revising their earnings estimates upward according to InvestingPro, which offers 10+ additional exclusive insights about the company’s financial health and growth prospects.
In other recent news, JBT Marel Corporation reported impressive second-quarter earnings for 2025, with an adjusted earnings per share of $1.49, surpassing the forecasted $1.27. The company’s revenue reached $935 million, exceeding the anticipated $816.44 million, resulting in a revenue surprise of 14.5%. In addition to its strong earnings performance, JBT Marel announced plans to offer $500 million in convertible senior notes due 2030 through a private offering to qualified institutional buyers, with an option for initial purchasers to buy an additional $75 million in notes.
William Blair has upgraded JBT Marel’s stock rating from Market Perform to Outperform, citing confidence in the company’s acquisition integration and addressing previous concerns about the meat and fish segments. The upgrade follows recent management discussions and highlights the company’s improved outlook. These developments reflect a period of significant activity for JBT Marel, with a focus on capital raising and strategic positioning.
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