Columbus McKinnon Announces Pricing of Senior Secured Notes

Core Viewpoint - Columbus McKinnon Corporation has priced its offering of $900 million in senior secured notes to finance the acquisition of Kito Crosby Limited, with the offering size reduced from $1.225 billion to $900 million [1][2]. Group 1: Offering Details - The offering consists of 7.125% senior secured notes due in 2033, expected to close on January 30, 2026, pending customary closing conditions [1]. - The net proceeds from the notes will be used to finance the acquisition, repay Kito Crosby's existing debt, refinance Columbus McKinnon's existing debt, and cover related fees and expenses [2]. - The notes are not contingent on the acquisition's completion and will be subject to mandatory redemption if the acquisition does not close by August 10, 2026, or if the company determines it will not occur by that date [3]. Group 2: Security and Guarantees - Initially, the notes will be unsecured and not guaranteed by any subsidiary. After the acquisition, they will be secured by a first priority interest in substantially all assets of the company and its U.S. subsidiaries [4]. - The notes will be unconditionally guaranteed on a senior secured basis by the company's U.S. subsidiaries that will guarantee the new credit agreement related to the acquisition [4]. Group 3: Regulatory Information - The notes and related guarantees will not be registered under the Securities Act of 1933 and will be offered only to qualified institutional buyers and certain accredited investors [5].