Columbus McKinnon Completes $900 Million Senior Secured Notes Offering to Fund Acquisition of Kito Crosby

Columbus McKinnon Completes $900 Million Senior Secured Notes Offering

Columbus McKinnon Corporation, known for its innovative solutions in material handling, has announced the successful completion of its offering of $900 million in senior secured notes. This strategic move is aimed at funding its acquisition of Kito Crosby Limited, a company that aligns with Columbus McKinnon's vision of enhancing ergonomics in material handling operations.

The senior secured notes carry an interest rate of 7.125% and will mature in 2033. Columbus McKinnon intends to utilize the net proceeds from this offering, along with funds from the sale of convertible shares, to manage the acquisition process. This includes repaying existing debts associated with Kito Crosby and addressing transaction-related expenses.

Though the success of this offering is significant, it is important to note that the notes were not contingent upon the acquisition's completion. However, there are protective measures in place, including a mandatory redemption clause that will come into effect if the acquisition is not finalized by August 10, 2026.

Initially secured notes are vulnerable until the acquisition is concluded; post-acquisition, they will be backed by a first-priority security interest in the assets of Columbus McKinnon and its U.S. subsidiaries, thanks to new senior secured credit facilities that will be instituted.

The notes and accompanying guarantees have not been registered under federal securities laws, making them available only to qualified institutional buyers and non-U.S. persons via specific regulatory frameworks. It’s crucial for potential investors to acknowledge that this does not constitute a solicitation for the purchase of these notes in jurisdictions where such offers would be illegal prior to appropriate registration or qualification.

About Columbus McKinnon

Columbus McKinnon Corporation stands at the forefront of design and manufacturing in intelligent motion solutions that not only enhance productivity but also improve safety in material handling processes. Their offerings include an array of products such as hoists, cranes, conveyors, and other essential equipment that ensure efficient material movement in a variety of commercial and industrial settings.

Their approach is firmly rooted in superior design principles and engineering expertise, positioning them as leaders in the industry. As the company embarks on integrating Kito Crosby into its operations, it anticipates enhanced capabilities and efficiencies that will benefit clients and stakeholders alike.

Looking Ahead

As the company progresses in its acquisition pursuits and continues to roll out innovative solutions, stakeholders are advised to remain tuned to future updates. Columbus McKinnon’s ongoing commitment to excellence in design and manufacturing is set to reshape standards in the material handling sector.

Overall, Columbus McKinnon's latest financial maneuver not only strengthens its strategic position within the market but also reinforces its commitment to delivering high-quality, ergonomically designed materials handling solutions that pave the way for safer and more efficient work environments.