H.B. Fuller Prices $850 Million Note Offering to Fund Advanced Medical Solutions Acquisition
H.B. Fuller Company (NYSE:FUL) has priced a private offering of $850 million in senior unsecured notes to help finance its acquisition of Advanced Medical Solutions. The notes, which carry an interest rate of 7.625% and are due in 2034, were priced at 100% of their face value. The sale is expected to close on or about October 21, 2026.
The company plans to combine the net proceeds from this offering with existing cash and other borrowings. This capital will fund the medical acquisition, pay down outstanding debt under its credit facility, and redeem its outstanding 4.000% notes that are due in 2027.
Investors should monitor the progress of the acquisition. If the transaction is not completed by the designated outside date of June 25, 2027, the company will be required to redeem $450 million of these newly issued notes at 100% of their principal amount, plus any accrued interest.
Key points
- H.B. Fuller priced $850 million of senior unsecured notes due 2034 at 100% of their principal amount.
- The notes carry a 7.625% interest rate with semi-annual payments and are expected to close around October 21, 2026.
- Proceeds will fund the Advanced Medical Solutions acquisition, repay credit facility debt, and redeem 4.000% notes due 2027.
- If the acquisition is not completed by June 25, 2027, the company must redeem $450 million of the notes.
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How we writeDisclaimerQuestions and answers
Why is H.B. Fuller raising 850 million dollars?
The company is raising the funds to finance its acquisition of Advanced Medical Solutions, pay down credit facility debt, and redeem its 4.000% notes due in 2027.
What happens if the Advanced Medical Solutions acquisition falls through?
If the acquisition is not completed by June 25, 2027, H.B. Fuller must redeem 450 million dollars of the notes at 100% plus accrued interest.
What are the terms of H.B. Fuller's new senior notes?
The senior unsecured notes total 850 million dollars, carry a 7.625% interest rate, mature in 2034, and pay interest semi-annually.