BALL GROUND, GA – Chart Industries , Inc. (NYSE:GTLS), a manufacturer of highly engineered equipment servicing multiple applications in the energy and industrial gas markets, has concluded agreements to terminate warrant transactions related to its convertible notes, according to a filing with the Securities and Exchange Commission today.
The agreements, known as Unwind Agreements, were executed with Morgan Stanley (NYSE:MS) & Co. International plc, Bank of America, N.A., and JPMorgan Chase (NYSE:JPM) Bank, National Association, London Branch, the three Option Counterparties involved in the original warrant transactions. These transactions were linked to $258,750,000 principal amount of 1.00% Convertible Senior Subordinated Notes due 2024.
Under the terms of the Unwind Agreements, which took effect today, Chart Industries will deliver shares of its common stock to each Option Counterparty. The number of shares to be delivered is based on a pricing grid tied to the Rule 10b-18 volume-weighted average price for the Common Stock during a specified measurement period.
The warrant transactions originally stemmed from confirmations dated October 31, 2017, and November 1, 2017. The company's decision to enter into the Unwind Agreements and terminate the warrant transactions is detailed in the 8-K report filed with the SEC. This move finalizes the obligations of Chart Industries under the previous arrangements with the Option Counterparties.
The announcement was made officially by Chart Industries' President and Chief Executive Officer, Jillian C. Evanko, who signed the SEC report on behalf of the company. The information is based on a press release statement issued by Chart Industries, Inc.
In other recent news, Chart Industries showcased a robust financial performance in the third quarter of 2024. The company reported a 22.4% increase in sales, reaching $1.06 billion, and a significant $200.7 million in net cash from operating activities. Orders also saw a substantial increase, totaling $1.17 billion, a 5.4% rise from the previous year, primarily driven by the energy and hydrogen sectors.
Citi, CL King, and Stifel have all maintained their Buy ratings for Chart Industries, with price targets of $190, $168, and $200 respectively, reflecting confidence in the company's financial performance and growth trajectory. Notably, Stifel raised its price target following Chart Industries' recent financial performance, which showed promising signs of progress in free cash flow.
Recent developments include updates to the company's guidance for full-year 2024 and 2025. For 2024, sales are projected between $4.2 billion and $4.3 billion, with an adjusted EBITDA expected to be approximately $1.015 billion to $1.045 billion. Looking ahead to 2025, Chart Industries expects sales to be between $4.65 billion and $4.85 billion, with adjusted EBITDA between $1.175 billion and $1.225 billion.
InvestingPro Insights
Chart Industries' recent decision to unwind warrant transactions reflects its proactive approach to managing its financial obligations. This move aligns with the company's strong financial performance, as evidenced by recent InvestingPro data. Chart Industries boasts a market capitalization of $6.59 billion and has demonstrated impressive revenue growth of 46.41% over the last twelve months as of Q3 2024.
InvestingPro Tips highlight that Chart Industries has a perfect Piotroski Score of 9, indicating robust financial health. Additionally, analysts anticipate sales growth in the current year, which could further strengthen the company's market position. The stock has shown strong returns, with a 43.97% price increase over the past month and a 50.83% gain over the last three months.
It's worth noting that Chart Industries is trading near its 52-week high, with its current price at 98.72% of that peak. This performance, coupled with an InvestingPro Fair Value of $209.88, suggests potential upside for investors. For those interested in a deeper analysis, InvestingPro offers 13 additional tips for Chart Industries, providing a comprehensive view of the company's prospects.
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