Summary
Curtiss-Wright Corporation (CW) announced on February 27, 2013, the completion of a significant debt financing transaction. The company successfully issued and sold $500 million of senior notes in a private placement. This issuance comprises multiple tranches with varying interest rates and maturity dates, ranging from 2023 to 2028, indicating a strategic approach to managing its debt profile and locking in borrowing costs. The primary purpose of this substantial capital raise is to bolster the company's financial flexibility. Proceeds will be directed towards reducing outstanding debt under its revolving credit facilities, which can improve its leverage ratios and reduce interest expenses. Additionally, the funds are earmarked to support Curtiss-Wright's ongoing strategic growth initiatives and for general corporate purposes. This move suggests the company is positioning itself for future investments and operational expansion.
Key Highlights
- 1Completed a $500 million senior notes offering on February 26, 2013, through a private placement to institutional accredited investors.
- 2The notes consist of four tranches with maturities in 2023, 2025, and two in 2028, with coupon rates ranging from 3.70% to 4.11%.
- 3Proceeds will be used to pay down outstanding debt under revolving credit facilities, fund strategic growth plans, and for general corporate purposes.
- 4The senior notes rank equally with other senior unsecured indebtedness of the company.
- 5The offering was conducted as a private placement, exempt from the registration requirements of the Securities Act of 1933.
- 6Key financial covenants include a maximum Consolidated Debt to Consolidated Total Capitalization ratio of 0.60 to 1.00 and a minimum Consolidated Net Worth requirement.
- 7Customary affirmative and restrictive covenants are included in the Note Purchase Agreement, covering areas such as subsidiary debt, mergers, asset sales, and affiliate transactions.