ALPHARETTA, Ga. - Mativ Holdings, Inc. (NYSE: MATV), a global leader in specialty materials, has initiated a private offering of $400 million in senior notes due 2029, the company announced Monday. The offering, which is exempt from registration under the Securities Act of 1933 and contingent on market conditions, will involve senior unsecured obligations guaranteed by Mativ's subsidiaries under certain conditions.
The proceeds from the sale of these senior notes are earmarked for two primary purposes: the redemption of the company's 6.875% Senior Notes due 2026 and the repayment of around $43 million of the outstanding principal amount on its term loan B facility. The notes and their guarantees will be available exclusively to qualified institutional buyers and non-U.S. persons outside the United States, in accordance with Rule 144A and Regulation S under the Securities Act.
The company has clarified that the notes, along with the guarantees, have not been registered under the Securities Act or any other jurisdiction's securities laws. Consequently, they may not be offered or sold within the United States absent registration or an exemption from registration requirements.
Mativ Holdings, Inc. specializes in engineering solutions for complex challenges, focusing on materials that connect, protect, and purify. With a presence on three continents and sales in over 100 countries, Mativ operates through two segments: Filtration & Advanced Materials and Sustainable & Adhesive Solutions. The company's portfolio spans technologies that include polymers, fibers, and resins, targeting premium applications across diverse categories.
This press release does not constitute an offer to sell the securities or a solicitation of an offer to buy, nor shall there be any sales of the notes in any jurisdiction where such offer, solicitation, or sale would be unlawful without registration or qualification under the securities laws of such jurisdiction. Additionally, this announcement does not represent an offer to redeem or a notice of redemption for the 2026 Notes.
The information provided is based on a press release statement from Mativ Holdings, Inc.
In other recent news, Mativ has reported a robust second quarter in 2024, with a significant 45% increase in adjusted EBITDA to $67 million. This growth is mainly attributed to the expansion in the SaaS segment and effective cost management strategies. The company's consolidated sales also saw a nearly 5% sequential increase, with SaaS contributing to volume gains. Mativ's operational improvements and cost management have been key in offsetting material inflation.
Despite market challenges, Mativ expects net sales in the second half of 2024 to mirror Q2 levels, with a year-over-year increase in sales and adjusted EBITDA. The company has projected capital expenditures to be around $60 million for the full year. With a net debt of $1 billion and available liquidity of $436 million, the firm is focusing on debt paydown.
In terms of future expectations, Mativ is targeting investments in high-opportunity markets. The company reported a positive free cash flow of $37 million in Q2, with expectations for continued free cash flow in the upcoming quarters. These recent developments highlight Mativ's strategic resilience and commitment to sustainable growth.
InvestingPro Insights
As Mativ Holdings, Inc. (NYSE: MATV) moves forward with its strategic financial restructuring, including the private offering of senior notes, investors may find the following data and insights from InvestingPro valuable when assessing the company’s current financial health and future prospects.
InvestingPro Data provides a snapshot of Mativ's financial metrics, indicating a market capitalization of approximately $978.43 million. Despite a challenging environment, reflected in a negative revenue growth rate of -8.22% over the last twelve months as of Q2 2024, the company has managed to maintain a gross profit margin of 18.65% during the same period. These figures suggest that while Mativ is facing headwinds in revenue expansion, it has maintained a degree of profitability in its operations.
InvestingPro Tips highlight that analysts have mixed views on Mativ's future performance. Notably, Mativ is expected to return to profitability this year, which aligns with the company's efforts to improve its financial structure through the senior notes offering. However, it is important to note that two analysts have revised their earnings expectations downwards for the upcoming period, signaling potential concerns about the company’s near-term earnings potential.
One of the most reassuring aspects for investors might be the company's commitment to shareholder returns, as evidenced by its impressive track record of maintaining dividend payments for 29 consecutive years. This consistency demonstrates Mativ's dedication to providing value to its shareholders, even amidst financial restructuring.
For investors seeking a deeper analysis, there are additional InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/MATV. These tips provide further insights into Mativ's financial performance and projections, enabling investors to make more informed decisions based on comprehensive data and expert analysis.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.