Phinia Inc. (NYSE: PHIN) has announced a proposed private offering of $425 million aggregate principal amount of its senior secured notes due 2029. The notes will be guaranteed by each of the company's subsidiaries that guarantees its credit facilities and will be secured by first-priority security interests in substantially all of the company's and the guarantors' assets, ranking equally with the security interests securing its credit facilities.
The company plans to utilize the net proceeds of the offering to repay all of its outstanding borrowings under its term loan b facility and to pay a portion of the fees and expenses related to the offering.
In terms of financial metrics, the company's outstanding borrowings under its term loan b facility are set to be repaid using the net proceeds from the offering. This implies a decrease in the company's outstanding borrowings.
The offering of senior secured notes due 2029 also indicates a strategic move by Phinia Inc. to address its debt structure and manage its financial obligations. The use of first-priority security interests in substantially all of the company's and the guarantors' assets underscores the commitment to secure the notes and prioritize the repayment of its obligations.
As a result of these announcements, the company's shares have moved 0.8% on the market, and are now trading at a price of $37.97. If you want to know more, read the company's complete 8-K report here.
