Forum Energy Technologies Introduces $100 Million Bond Offering

Forum Energy Technologies Announces $100 Million Bond Offering

Forum Energy Technologies, Inc. (NYSE: FET), a key player in the global energy sector, has recently unveiled an exciting opportunity for investors with a proposed offering of senior secured bonds. The company aims to raise approximately $100 million through a backstopped private placement of five-year bonds. This strategic move is designed to bolster FET's financial foundation while enabling it to manage its obligations effectively.

Purpose of the Bond Offering

The primary goal of this bond offering is to generate net proceeds that will be utilized for significant financial actions. FET plans to redeem all outstanding 9.000% Convertible Senior Secured Notes due in 2025 and to pay off outstanding borrowings related to the Seller Term Loan, which was previously issued in association with the acquisition of Variperm Energy Services. This proactive approach highlights FET's commitment to maintaining a healthy balance sheet and optimizing its capital structure.

Offering Specifics and Regulations

The forthcoming bonds have not been registered under the Securities Act of 1933 or any related state securities laws, which means they cannot be sold to U.S. persons unless specific exemptions apply. FET intends to conduct this offering in compliance with Regulation S of the Securities Act, targeting non-U.S. persons and focusing on international markets. This regulatory compliance underscores the company's dedication to operating within legal frameworks while maximizing its fundraising efforts.

FET’s Commitment to Stakeholders

FET remains focused on its shareholders and continues to prioritize transparency in its endeavors. The firm wants to clarify that this announcement is not an offer to sell or solicit investments in these securities in jurisdictions where such actions may be illegal. Additionally, this communication does not act as a notice of redemption concerning the 2025 Notes or the Seller Term Loan repayment.

About Forum Energy Technologies

Founded in Houston, Texas, Forum Energy Technologies is a leading manufacturing entity serving the oil and natural gas industries, alongside industrial and renewable energy sectors. With a commitment to delivering innovative solutions, FET enhances operational safety and efficiency while reducing the environmental impact of energy production. This holistic approach to energy manufacturing positions the company as a valuable partner in the global energy landscape.

Future Outlook for FET

As the energy market evolves, Forum Energy Technologies aims to leverage this bond offering to strengthen its market position and pursue new growth opportunities. The company’s strategic focus on improving operational effectiveness and technological advancements ensures that it remains competitive. By addressing both current financial obligations and future investments, FET is taking significant steps towards long-term success and sustainability.

Frequently Asked Questions

1. What is the purpose of the $100 million bond offering?

The bond proceeds will be used to redeem existing debt and repay borrowings related to acquisitions.

2. Who is eligible to participate in the bond offering?

The offering is targeted at non-U.S. persons and will comply with international regulations.

3. What type of bonds is FET offering?

FET is proposing to offer 5-year senior secured bonds to investors.

4. Where is Forum Energy Technologies headquartered?

FET is headquartered in Houston, Texas, operating in the energy manufacturing sector.

5. How does this offering benefit investors?

This offering enables FET to improve its financial stability while potentially enhancing shareholder value.

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