Commercial Metals Company (CMC) has announced the closing of a $2,000 million senior notes offering, with $1,000 million in aggregate principal amount of 5.75% senior notes due 2033 and $1,000 million in aggregate principal amount of 6.00% senior notes due 2035. The notes are senior unsecured obligations and rank equally with all of CMC's existing and future senior unsecured indebtedness.
The company intends to use the net proceeds from the sale of the notes to fund the purchase price for the previously announced acquisition of all of the issued and outstanding equity securities of entities that own Foley Products Company, LLC, and transaction-related fees and expenses, as well as for general corporate purposes.
The gross proceeds from the issuance of the notes were deposited into an escrow account at the closing of the offering, pending the consummation of the Foley acquisition.
The notes were offered only to persons reasonably believed to be qualified institutional buyers and to certain non-U.S. persons outside the United States. They have not been and will not be registered under the securities laws of any other jurisdiction.
CMC is described as an innovative solutions provider helping build a stronger, safer, and more sustainable world, with an extensive manufacturing network principally located in the United States and central Europe. Their solutions support early-stage construction across a wide variety of applications, including infrastructure, non-residential, residential, industrial, and energy generation and transmission. Today the company's shares have moved -0.16% to a price of $63.78. Check out the company's full 8-K submission here.
