ALPHARETTA, Ga. - Mativ Holdings, Inc. (NYSE: MATV) announced the pricing of a $400 million private offering of 8.000% senior notes due 2029. These notes, which will be unsecured senior obligations of the company, are expected to close on October 7, 2024, subject to customary conditions.
The notes will be guaranteed by Mativ's existing and future wholly owned subsidiaries that are borrowers or guarantors under its credit agreement, with certain exceptions. The proceeds are earmarked for the redemption of Mativ's 6.875% Senior Notes due in 2026 and to repay around $43 million of the outstanding borrowings under the term loan B facility of its credit agreement.
This offering is limited to qualified institutional buyers in accordance with Rule 144A under the Securities Act and to non-U.S. persons outside the United States under Regulation S. The notes and related guarantees will not be registered under the Securities Act or any state securities laws and cannot be offered or sold in the U.S. absent registration or an applicable exemption from such requirements.
Mativ, a global leader in specialty materials, operates in over 100 countries and manufactures on three continents. The company's two segments, Filtration & Advanced Materials and Sustainable & Adhesive Solutions, focus on premium applications across diversified categories.
The press release includes forward-looking statements regarding the use of proceeds and other financial strategies. These statements are subject to risks and uncertainties that could cause actual results to differ from those projected.
The information disclosed is based on a press release statement from Mativ Holdings, Inc. and is intended to provide investors with relevant financial news about the company's recent activities.
In other recent news, Mativ Holdings, Inc. has launched a $400 million private offering of senior notes due 2029. This offering is part of Mativ's strategy to redeem its 6.875% Senior Notes due 2026 and repay around $43 million of its outstanding term loan B facility. The notes are available exclusively to qualified institutional buyers and non-U.S. persons outside the United States.
In terms of financial performance, Mativ reported a significant 45% increase in adjusted EBITDA to $67 million in the second quarter of 2024. The company's consolidated sales also saw a nearly 5% sequential increase, largely driven by the expansion in the SaaS segment and effective cost management strategies. 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.
Looking ahead, Mativ has projected capital expenditures to be around $60 million for the full year and is focusing on debt paydown, with a net debt of $1 billion and available liquidity of $436 million. The company is also targeting investments in high-opportunity markets and 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) ventures into a new private offering, the market is closely watching its financial health and future prospects. With a market capitalization of $961.59 million, Mativ's financial landscape is one to observe. According to real-time data from InvestingPro, the company's Price to Earnings (P/E) ratio stands at -2.95, indicating that investors are expecting future earnings growth despite the company not being profitable over the last twelve months. Notably, the adjusted P/E ratio for the last twelve months as of Q2 2024 is 17.87, reflecting a market anticipation of profitability improvements.
InvestingPro Tips hint at a mixed sentiment: while net income is expected to grow this year, two analysts have revised their earnings expectations downwards for the upcoming period. The stock has experienced a significant decline over the last week, with a 9.74% drop in price total return. However, the company's valuation implies a strong free cash flow yield, and it has maintained dividend payments for 29 consecutive years, with a current dividend yield of 2.33%. Additionally, Mativ's liquid assets exceed its short-term obligations, providing a cushion for financial operations.
For investors looking for deeper analysis, there are additional InvestingPro Tips available, which provide further insights into Mativ's performance and outlook. The company is trading at a high EBIT valuation multiple, and while there have been some negative revisions, analysts predict Mativ will turn profitable this year. To explore these insights in more detail, investors can visit InvestingPro for a comprehensive set of tips and metrics tailored to Mativ Holdings, Inc.
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