#United States #Senior Secured Notes #Charlotte, North Carolina #Columbus McKinnon #Kito Crosby

Columbus McKinnon Announces Pricing of Senior Secured Notes

Columbus McKinnon Corporation, listed on Nasdaq under the ticker CMCO, is a prominent player in designing and manufacturing intelligent motion solutions aimed at enhancing material handling. Recently, the company revealed significant details about its financial strategies, specifically focusing on the pricing of its senior secured notes.

On January 22, 2026, Columbus McKinnon disclosed its decision to price its offering of senior secured notes amounting to $900 million with an interest rate of 7.125%, set to mature in 2033. This move is strategically aligned with the company's objective of acquiring Kito Crosby Limited, as previously announced.

The offering has seen a reduction from an initial proposal of $1,225 million, reflecting adjustments based on market conditions or company assessments. Notably, the closing of this offering is scheduled for January 30, 2026, contingent upon satisfying standard closing conditions.

Financing the Acquisition

The primary aim of this notes offering is to raise funds that will be utilized not only for financing the Kito Crosby acquisition but also for refinancing Columbus McKinnon's existing debts and facing associated fees and expenses. The issuance of notes is independent of the completion of the acquisition, hence ensuring that the company retains flexibility in its financial maneuvers.

In case the acquisition does not finalize by August 10, 2026, there is a mandatory redemption clause attached to the notes. Such stipulations serve to safeguard the interests of the investors by ensuring that their capital is returned if the projected acquisition fails to proceed.

These notes will initially remain unsecured, with no guarantees from any subsidiary of Columbus McKinnon. However, post-acquisition, the notes will be backed by a first-priority lien on the majority of the company's assets alongside certain subsidiaries. This will enhance their appeal to potential buyers concerned about security.

Regulatory Compliance and Investor Outreach

It is crucial to note that the notes will not be registered under the Securities Act of 1933, limiting their offering to qualified institutional buyers and select accredited investors. This approach is reflective of Columbus McKinnon’s strategy to draw in serious institutional interest while navigating through stringent regulatory frameworks.

In terms of investor outreach, the offering is specifically tailored to attract both domestic and international investors, allowing for participation through offshore transactions, a move that strengthens Columbus McKinnon's capital inflow avenues.

About Columbus McKinnon

Columbus McKinnon continues to augment its reputation as a leader in intelligent motion solutions focussed on the safe and efficient handling of materials across various industries. Its portfolio includes hoists, crane components, precision conveyor systems, and more, padding its credentials with superior design and engineering expertise.

The company remains committed to achieving operational excellence while strategically positioning itself in the market to leverage potential growth opportunities.

Looking Ahead

Given the substantial reduction in the offering size, industry analysts and investors will be keen to observe how Columbus McKinnon navigates this financial landscape and whether it successfully moves forward with the acquisition of Kito Crosby. The forthcoming months will be crucial as the company seeks to finalize its plans and strengthen its market position. As always, stakeholders are advised to keep a close watch on the evolving developments surrounding this offering.