Dentsply Sirona Inc. (NASDAQ: XRAY) has announced the pricing of an offering of $550 million aggregate principal amount of its 8.375% junior subordinated notes due 2055. The notes will bear interest at a fixed rate of 8.375% per year until September 12, 2030, after which the interest rate will be reset based on the five-year U.S. Treasury rate plus a spread of 4.379%, with a floor of 8.375%.
The net proceeds from the offering will be approximately $544.5 million, which the company intends to use for general corporate purposes, including the repayment of existing indebtedness. The offering is expected to close on June 12, 2025, subject to customary closing conditions.
Goldman Sachs & Co. LLC is acting as the sole book-running manager for the offering, with PNC Capital Markets LLC, Commerz Markets LLC, Truist Securities, Inc., and MUFG Securities Americas Inc. acting as co-managers.
This offering follows the company's existing 364-day $435 million term loan and other short-term indebtedness. The offering is being made pursuant to an effective shelf registration statement on file with the U.S. Securities and Exchange Commission.
The company's decision to raise funds through this offering signifies its intention to address its financial obligations and pursue its operational and strategic objectives. Today the company's shares have moved -0.22% to a price of $15.865. For more information, read the company's full 8-K submission here.
