#USA #Senior Secured Notes #Irving #Financial Services #American Bath Group

CP Atlas Buyer, Inc. Launches $500 Million Notes Offering

Introduction

On July 1, 2025, CP Atlas Buyer, Inc. made a significant announcement regarding the pricing of a $500 million aggregate principal amount of its 9.750% senior secured notes. This strategic action aims to strengthen the company's financial foundation, allowing for the funding of acquisitions and the management of existing debt obligations.

Details of the Offering

The offering, which is scheduled to close on July 7, 2025, will be contingent upon meeting customary closing conditions. The net proceeds from this offering, along with new borrowings from an amended first lien term loan facility, are intended for various uses, which include:

1. Paying off Existing Debt: The proceeds will completely repay outstanding amounts under the company's existing first lien term loan facility, incremental first lien term loan facility, and revolving credit facility.
2. Covering Costs: The funds will be used to pay fees, costs, and expenses related to the offering and a previously announced exchange offer and consent solicitation.
3. Funding Acquisitions: The proceeds will also support two potential acquisitions, further expanding the company’s influence and market share.
4. Corporate Purposes: Any remaining funds will be allocated for general corporate purposes if the acquisitions do not close by the expected timeline.

Market Conditions and Investor Considerations

While the company aims to move forward with the offering, it remains aware that market conditions can impact the success of such financial maneuvers. There are risks involved, including the uncertainty of completing the offering as planned or at all, leading to a cautious approach in their forward-looking statements. The notes being offered have not been registered under the U.S. Securities Act or any other jurisdiction, which means they are accessible only to certain institutional buyers and qualified market participants.

About CP Atlas and American Bath Group

CP Atlas Buyer, Inc. is the parent company of American Bath Group, LLC, which stands at the forefront of bathware manufacturing in North America. American Bath Group is lauded for its diverse range of products, including showers, bathtubs, and a variety of bath-related accessories that cater to both aesthetic and functional needs in residential and commercial spaces.

Conclusion

This $500 million notes offering represents a strategic financial move for CP Atlas Buyer, Inc. as it seeks to enhance its operational capabilities and solidify its market position. Stakeholders should stay tuned for further developments as the company navigates through the final steps before closing on this significant transaction. The outcomes of this offering could play a pivotal role in shaping the future direction of both CP Atlas and American Bath Group in an evolving market landscape.