JBT Marel to offer $500 million in convertible senior notes

CHICAGO - JBT Marel Corporation (NYSE and Nasdaq Iceland:JBTM), a $7.3 billion market cap food technology solutions provider that has delivered a remarkable 63% return over the past year, announced Wednesday its intention to offer $500 million in convertible senior notes due 2030 through a private offering to qualified institutional buyers. According to InvestingPro analysis, the company currently operates with a moderate level of debt and shows strong growth potential, with analysts expecting profitability this year.

The food technology solutions provider will also grant initial purchasers an option to buy up to an additional $75 million in notes within a 13-day period from the initial closing date.

According to the company’s statement, proceeds will partially fund convertible note hedge and warrant transactions, with remaining funds used to repay a portion of borrowings under its revolving credit facility. With total debt standing at $1.92 billion, JBT Marel plans to later use its credit facility or cash reserves to refinance its 0.25 percent convertible senior notes due 2026.

The new notes will mature on September 15, 2030, unless converted, redeemed or repurchased earlier. Conversion options will be limited to specific conditions and periods before June 15, 2030, after which notes will be convertible any time until two trading days before maturity.

In connection with the offering, JBT Marel expects to enter into privately negotiated convertible note hedge transactions with certain dealers to offset potential dilution to common stock. The company will simultaneously enter into warrant transactions with hedge counterparties involving the same number of shares.

The notes are being offered only to qualified institutional buyers under Rule 144A of the Securities Act of 1933 and have not been registered under the Securities Act or other securities laws.

JBT Marel Corporation was formed through the merger of JBT and Marel, providing technology solutions to the food and beverage industry across more than 30 countries.

The information in this article is based on a company press release statement.

In other recent news, JBT Marel Corp reported impressive second-quarter earnings for 2025, surpassing analysts’ expectations. The company achieved an adjusted earnings per share (EPS) of $1.49, exceeding the projected $1.27. Additionally, JBT Marel’s revenue reached $935 million, outperforming the anticipated $816.44 million, resulting in a revenue surprise of 14.5%. Following these strong results, William Blair upgraded JBT Marel’s stock rating from Market Perform to Outperform. This upgrade reflects increased confidence in the company’s acquisition integration efforts. Previous concerns had centered around deteriorating fundamentals in meat and fish segments, back-end-loaded synergies, tariff exposure, and limited financial disclosure. These developments indicate a positive shift in the company’s trajectory.

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