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

Columbus McKinnon Corporation Launches Senior Secured Notes Offering

Columbus McKinnon Corporation (Nasdaq: CMCO), a prominent designer and manufacturer of intelligent motion solutions for material handling, has officially announced its plan for a $1,225 million offering of senior secured notes that will mature in 2033. This strategic move is designed to support the company's acquisition of Kito Crosby Limited, which has been previously disclosed by the firm and is positioned to strengthen its market presence.

Details of the Offering

The offering entails a senior secured notes issuance in connection with the long-anticipated acquisition of Kito Crosby. This financial maneuver is essential not only for facilitating the purchase but also for refinancing existing debts associated with Kito Crosby and Columbus McKinnon itself. The net proceeds will serve multiple purposes, including:

• - Financing the acquisition
• - Paying for Kito Crosby's existing debts
• - Refinancing Columbus McKinnon’s current debts
• - Covering related fees and expenses associated with the transaction

The completion of this notes offering revolves around market conditions, making it subject to standard and customary conditions. It’s essential to note that the offering is independent of the acquisition's finalization.

Redemption and Security

The newly issued notes will be initially unsecured and will not have any subsidiary guarantees. However, post-acquisition, the scenario will shift. Upon completion of the acquisition of Kito Crosby, these notes will be secured by a first priority interest in the majority of the company’s assets and those of its U.S. subsidiaries that will also guarantee new senior secured credit facilities linked to this agreement.

Furthermore, if the acquisition fails to materialize by a specified deadline of August 10, 2026, the notes will face a mandatory redemption. This situation highlights the strategic urgency that Columbus McKinnon places on finalizing the acquisition.

Compliance and Offer Restrictions

The new notes and their associated guarantees have not been registered under the Securities Act of 1933 and cannot be marketed or sold in the U.S. without proper registration. The offering will be extended only to qualified institutional buyers as defined by specific regulations and guidelines.

In compliance with regulatory stipulations, this announcement does not qualify as an offer to buy or sell these notes, emphasizing the importance of adhering to the legal frameworks governing such offerings.

About Columbus McKinnon Corporation

Founded with an innovative vision, Columbus McKinnon has progressively established itself as a global leader in producing intelligent motion solutions aimed at enhancing operational efficiency in material handling. The range of its offerings includes:

• - Hoists
• - Crane components
• - Precision conveyor systems
• - Rigging tools
• - Digital control systems

These products are tailored primarily for commercial and industrial settings, emphasizing safety and ergonomic advantages provided by cutting-edge design and engineering expertise.

Forward-Looking Statements

It’s crucial to recognize that this announcement may contain forward-looking statements as described under the Private Securities Litigation Reform Act of 1995. These projections depend on various assumptions and current expectations, covering aspects such as operational performance and economic conditions that could potentially influence actual outcomes.

In summary, Columbus McKinnon Corporation is taking assertive steps to not only secure its financial future through new capital but also to expand its operational footprint in the material handling sector by acquiring Kito Crosby. The structured plan for the senior secured notes showcases the company’s commitment to strategic growth and innovation in the industry.