READING, PA — EnerSys (NYSE: ENS), the Pennsylvania-based energy storage solutions provider, announced plans last week to offer $300 million in senior notes due 2032. The offering is contingent on market and customary conditions.
The proposed notes will be unsecured and unsubordinated obligations of the company, backed by guarantees from each of EnerSys’s subsidiaries that currently guarantee the company’s senior secured credit facilities and 4.375% senior notes due 2027.
EnerSys intends to use the net proceeds from this offering primarily to repay and retire a portion of its outstanding term loans. The remaining net proceeds will be allocated for general corporate purposes. This includes repaying a portion of the outstanding borrowings under its revolving credit facility without reducing the commitment. However, the exact allocation of these proceeds and the timing are left to the discretion of the company’s management.
It should be noted that the notes and their related guarantees will not be registered under the Securities Act of 1933, as amended, or any applicable state or foreign securities laws. Consequently, they may not be offered or sold in the United States unless there is an exemption from registration under the Securities Act and applicable state securities laws.
These notes will only be available to persons reasonably believed to be qualified institutional buyers under Rule 144A of the Securities Act. Outside the United States, the notes will be offered to non-U.S. persons under Regulation S of the Securities Act.
By refinancing its existing debts with the issuance of these senior notes, the company appears to be optimizing its balance sheet, potentially leading to stronger financial stability in the long term.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.