PITTSBURGH - Matthews International (NASDAQ:MATW) Corporation (NASDAQ GSM: MATW), a global provider of memorialization products, industrial technologies, and brand solutions, announced today its intention to offer senior secured second lien notes due 2027. The company aims to amend its senior credit facility to allow these notes to be secured with a second priority lien on nearly all assets of the company and certain domestic subsidiaries.
The proceeds from this private offering, along with borrowings under the company's senior credit facility, are intended to redeem all outstanding 5.25% senior notes due December 1, 2025. The redemption is planned for on or about October 25, 2024, including payment of accrued interest up to the redemption date.
The senior secured second lien notes will not be registered under the Securities Act of 1933 and will be offered only to qualified institutional buyers as per Rule 144A and to non-U.S. persons outside the United States under Regulation S. The offering of these notes will be made through a confidential offering memorandum.
Matthews International has clarified that this press release does not constitute an offer to sell or the solicitation of an offer to buy the notes or any other securities. The company has also stated that the notes will not be offered or sold in any jurisdiction where such an offer, solicitation, or sale would be unlawful without registration or qualification under the securities laws of that jurisdiction.
The company's release includes forward-looking statements regarding the offering and its intended use of proceeds, subject to various risks and uncertainties. Matthews International has not committed to updating these statements even if circumstances change.
With approximately 12,000 employees across over 30 countries, Matthews International operates in multiple segments, providing a range of products and services from memorialization products to high-tech custom energy storage solutions and brand experiences.
This news article is based on a press release statement from Matthews International Corporation and presents the facts without endorsement of claims or speculation about the potential impact on the industry or the company's future prospects.
In other recent news, Matthews International reported mixed results for its third quarter of fiscal year 2024. The company's net income was $1.8 million with consolidated sales of $427.8 million. Despite challenges in the Industrial Technologies segment, the Memorialization and SGK Brand Solutions segments showed solid performance, reporting sales of $202.7 million and $33.4 million respectively. Matthews International also exceeded expectations with its e-commerce initiative, achieving over $40 million in sales.
The company is currently managing a lawsuit with Tesla (NASDAQ:TSLA), but remains confident in its proprietary technology. To achieve significant annual savings, Matthews International is focusing on cost reduction programs. In addition, the company is in negotiations for significant orders from national brands, and plans to refinance its outstanding bonds by the fiscal year-end.
Despite certain challenges, Matthews International is optimistic about the future, expecting increased energy storage shipments and installations. The company's adjusted EBITDA for fiscal 2024 is projected to be between $205 million and $210 million. These are some of the recent developments surrounding Matthews International.
InvestingPro Insights
As Matthews International Corporation (NASDAQ GSM: MATW) navigates the financial markets with its latest strategic move to offer senior secured second lien notes, investors are closely monitoring the company's financial health and stock performance. Notably, Matthews International has been trading near its 52-week low, which could indicate a potential buying opportunity for value-seeking investors. The company's market capitalization currently stands at $714.76 million, reflecting its size and scale within the industry.
From a financial perspective, Matthews International has maintained a dividend payment streak for an impressive 31 consecutive years, showcasing its commitment to returning value to shareholders. The company's dividend yield is currently at 4.11%, which is attractive to income-focused investors. Additionally, Matthews International has raised its dividend for 26 consecutive years, further reinforcing its reputation as a reliable dividend-paying stock.
Investment analysts have taken note of the company's low Price-to-Earnings (P/E) ratio, which at 18.32 on an adjusted basis for the last twelve months as of Q3 2024, suggests that the stock may be undervalued relative to its near-term earnings growth. This could be a key metric for investors considering the company's potential for growth versus its market valuation.
For those looking to delve deeper into Matthews International's financials and stock performance, InvestingPro offers additional insights and tips. There are currently 6 more InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/MATW, providing a comprehensive view of the company's financial position and future prospects. These tips and metrics could prove invaluable for investors seeking to make informed decisions regarding Matthews International's offerings and overall investment potential.
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