Mattr Corp. Launches Debt Subscription Offering to Fund Growth
In an exciting development, Mattr Corp. recently revealed the details of its private placement offering where it aims to sell 125,000 debt subscription receipts. The proposed offering is strategically designed and priced at $1,018.75 per receipt, with a yield to maturity of 6.375%. This initiative is projected to generate approximately $129.3 million in gross proceeds for Mattr, positioning the company favorably for future expansion.
Details of the Debt Subscription Receipts
Each subscription receipt will provide holders with the opportunity to exchange it for a newly issued 7.25% senior unsecured note of Mattr, due April 2, 2031. The total amount will sum up to an aggregate principal of $300 million in senior unsecured notes once the offering is complete. This thoughtful move illustrates Mattr's commitment to providing value to its investors while also executing its strategic growth plans.
Funding Future Acquisitions
The primary use of proceeds from this offering is directed towards financing Mattr’s acquisition of AmerCable Incorporated, a move that is anticipated to significantly enhance Mattr's market position. The expected timeline for closing this acquisition is set for the first quarter of 2025, adding an exciting chapter to Mattr's growth trajectory. The management team believes this funding will provide added financial stability and mitigate risks associated with their expansion efforts.
Leadership Insights on the Offering
Tom Holloway, Mattr’s CFO, expressed enthusiasm regarding the offering. He noted that it would bolster the company's capital structure and convert part of the funding for AmerCable to a fixed rate, ensuring a more secure financial environment for Mattr as it pursues its long-term growth strategies. He also recognized the invaluable support from investors that has facilitated this venture.
Joining Forces with Established Underwriters
This offering is being facilitated by industry leaders TD Securities and National Bank Financial Markets, ensuring that Mattr is in good hands as it navigates this financial endeavor. The private placement will primarily target accredited investors in Canada, complying with stringent Canadian securities laws while also considering institutional buyers in the U.S.
About Mattr Corp.
Mattr Corp. is a forward-thinking global materials technology firm that serves a range of critical infrastructure markets, including transportation, communication, energy, and water management. By focusing on Composite and Connection Technologies, Mattr is dedicated to enhancing infrastructure responsibly while minimizing risk and promoting long-term sustainability.
Contact Information
For more details regarding this announcement or the company, interested parties can reach out to Meghan MacEachern, VP of External Communications & ESG, at 437.341.1848 or via email.
Frequently Asked Questions
What does Mattr Corp. aim to achieve with its debt subscription offering?
Mattr Corp. seeks to raise funds for the acquisition of AmerCable, which will enhance its capabilities in the materials technology sector.
What is a debt subscription receipt?
A debt subscription receipt is a financial instrument that allows investors to receive a bond or note after a private placement offering has been completed, typically under specified conditions.
Who are the underwriters of the offering?
The offering is facilitated by TD Securities and National Bank Financial Markets, both recognized leaders in the financial services industry.
When does Mattr expect the acquisition of AmerCable to close?
Mattr anticipates that the acquisition of AmerCable will close in the first quarter of 2025, subject to customary closing conditions.
What are Mattr's primary business segments?
Mattr operates in two primary segments: Composite Technologies and Connection Technologies, aimed at enhancing critical infrastructure in various sectors.
