JBT Marel closes $575 million convertible notes offering

JBT Marel Corporation (NYSE and Nasdaq Iceland: JBTM) completed its private offering of $575 million in convertible senior notes due 2030 with a 0.375 percent interest rate, according to a company statement.

The offering included $75 million from the initial purchasers' exercise of their option to acquire additional notes. The company used net proceeds to execute convertible note hedge and warrant transactions and repay part of its revolving credit facility borrowings.

JBT Marel plans to use its revolving credit facility and cash on hand to repay or refinance its 0.25 percent convertible senior notes due 2026 before maturity.

"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. "We believe the Notes, with a coupon rate of 37.5 basis points, will generate meaningful annual interest expense savings relative to a traditional high-yield note issuance."

The company executed convertible note hedge and warrant transactions to mitigate shareholder dilution until the share price reaches $283.42 per share, according to Meister.

The notes were offered to qualified institutional buyers under Rule 144A of the Securities Act of 1933. The securities have not been registered under federal securities laws and cannot be offered or sold in the United States without registration or an applicable exemption.

JBT Marel provides technology solutions to the food and beverage industry, operating sales, service, manufacturing and sourcing operations in more than 30 countries.

You May Also Be Interested In

• Karman Line Acquisition closes $200M IPO on Nasdaq
• Profusa reports Q2 2026 loss, advances G3 Vision Labs deal
• Vox Royalty agrees to buy two Australian royalties for A$3.4M