Today, Avient Corporation (NYSE:AVNT), a specialty materials company, announced the issuance of $650 million in senior unsecured notes. The 6.25% notes, maturing on November 1, 2031, were sold in a private transaction exempt from the registration requirements of the Securities Act of 1933.
Interest on these notes is payable semi-annually on May 1 and November 1, with the first payment due on May 1, 2025. These notes are senior unsecured obligations, positioning them above other potential unsecured debt in terms of repayment priority.
The indenture, dated today, includes provisions that restrict Avient's ability to engage in certain activities, such as incurring additional debt, issuing preferred stock, paying dividends, making certain investments, and entering into transactions with affiliates. These covenants are standard for such financial instruments and are designed to protect the interests of the note holders.
In the event of a change of control, as defined in the indenture, Avient must offer to repurchase the notes at 101% of their principal amount, plus any accrued and unpaid interest.
Avient retains the option to redeem all or part of the notes starting on September 15, 2027, at prices specified in the indenture. Additionally, the company may redeem up to 40% of the notes before September 15, 2027, with equity offering proceeds at a price of 106.250% of their principal amount.
The indenture also outlines events of default, which include non-payment, covenant breaches, cross-default with other indebtedness, bankruptcy and insolvency events, and unpaid judgments. Such events may allow or require the acceleration of repayment.
In other recent news, Avient Corporation disclosed a favorable Q2 2024 performance with sales reaching $850 million, marking a 3% increase over the same period of the previous year. The company also increased its full-year guidance, projecting sustained growth across various markets.
The company's organic sales grew by 5%, driven by market share gains, new product specifications, and inventory restocking. The adjusted EBITDA margin improved to 16.9%, with adjusted earnings per share at $0.76, a 21% increase from the previous year.
Avient Corporation has also initiated an offering of $650 million in senior notes due in 2031. The proceeds from this offering, along with existing cash, will be used to redeem its outstanding 5.75% senior notes due in 2025. This initiative is part of Avient's financial strategy.
In other developments, Avient expects a 9% increase in third-quarter earnings per share and has raised its full-year adjusted EBITDA guidance to $515 million to $540 million. The company plans to continue its focus on sustainability, reporting a reduction in greenhouse gas emissions with improved ratings from independent agencies. An Investor Day is scheduled for December 4th in New York City to share the company's strategic plan.
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