STERIS Prices $1.4B Senior Notes Offering
Ticker: STE · Form: 8-K · Filed: May 31, 2024 · CIK: 1757898
Sentiment: neutral
Topics: debt-offering, refinancing, notes
TL;DR
STERIS just sold $1.4B in new debt to pay off older debt maturing in 2025.
AI Summary
STERIS plc announced on May 31, 2024, that it has priced a public offering of $700 million aggregate principal amount of 7.000% senior notes due 2031 and $700 million aggregate principal amount of 7.000% senior notes due 2051. The company intends to use the net proceeds from this offering, along with cash on hand, to fund the redemption of its outstanding 3.750% senior notes due 2025.
Why It Matters
This offering allows STERIS to refinance its upcoming debt maturity, potentially lowering its interest expense and improving its financial flexibility.
Risk Assessment
Risk Level: low — The filing is a routine debt offering and refinancing, with no immediate negative implications for the company.
Key Numbers
- $1.4B — Senior Notes Offering (Total principal amount of new debt issued.)
- $700M — Senior Notes Due 2031 (Principal amount of notes maturing in 2031.)
- $700M — Senior Notes Due 2051 (Principal amount of notes maturing in 2051.)
- $3.750% — Senior Notes Due 2025 (Interest rate of debt being refinanced.)
Key Players & Entities
- STERIS plc (company) — Registrant
- 7.000% senior notes due 2031 (dollar_amount) — Debt offering
- 7.000% senior notes due 2051 (dollar_amount) — Debt offering
- 3.750% senior notes due 2025 (dollar_amount) — Debt to be redeemed
FAQ
What is the total principal amount of the senior notes STERIS plc has priced?
STERIS plc has priced a public offering of $700 million aggregate principal amount of 7.000% senior notes due 2031 and $700 million aggregate principal amount of 7.000% senior notes due 2051, totaling $1.4 billion.
What is the purpose of this new debt offering?
The company intends to use the net proceeds from this offering, along with cash on hand, to fund the redemption of its outstanding 3.750% senior notes due 2025.
When was the pricing of these senior notes announced?
The pricing of the senior notes was announced on May 31, 2024.
What are the interest rates on the new senior notes?
The new senior notes have an interest rate of 7.000% for both the notes due 2031 and the notes due 2051.
What is the maturity date of the notes being redeemed?
The notes being redeemed are the outstanding 3.750% senior notes due 2025.
Filing Stats: 1,658 words · 7 min read · ~6 pages · Grade level 20 · Accepted 2024-05-31 16:19:06
Key Financial Figures
- $0.001 — on which registered Ordinary Shares. $0.001 par value STE New York Stock Exchan
- $787.5 m — affiliate of Peak Rock Capital LLC, for $787.5 million, subject to customary adjustments
- $12.5 million — ry adjustments, and up to an additional $12.5 million in contingent payment payable if the De
Filing Documents
- d810083d8k.htm (8-K) — 33KB
- 0001193125-24-151805.txt ( ) — 193KB
- ste-20240531.xsd (EX-101.SCH) — 4KB
- ste-20240531_def.xml (EX-101.DEF) — 13KB
- ste-20240531_lab.xml (EX-101.LAB) — 22KB
- ste-20240531_pre.xml (EX-101.PRE) — 14KB
- d810083d8k_htm.xml (XML) — 7KB
Forward-Looking Statements
Forward-Looking Statements This Current Report on Form 8-K may contain statements concerning certain trends, expectations, forecasts, estimates, or other forward-looking information affecting or relating to STERIS or its industry, products or activities that are intended to qualify for the protections afforded "forward-looking statements" under the Private Securities Litigation Reform Act of 1995 and other laws and regulations. Forward-looking statements speak only as to the date the statement is made and may be identified by the use of forward-looking terms such as "may," "will," "expects," "believes," "anticipates," "plans," "estimates," "projects," "targets," "forecasts," "outlook," "impact," "potential," "confidence," "improve," "optimistic," "deliver," "orders," "backlog," "comfortable," "trend" and "seeks," or the negative of such terms or other variations on such terms or comparable terminology. Many important factors could cause actual results to differ materially from those in the forward-looking statements including, without limitation, statements related to the expected benefits of and timing of completion of the restructuring plan, disruption of production or supplies, changes in market conditions, political events, pending or future claims or litigation, competitive factors, technology advances, actions of regulatory agencies, and changes in laws, government regulations, labeling or product approvals or the application or interpretation thereof. Other risk factors are described in STERIS's other securities filings, including Item 1A of our Annual Report on Form 10-K for the year ended March 31, 2024. Many of these important factors are outside of STERIS's control. No assurances can be provided as to any result or the timing of any outcome regarding matters described in STERIS's securities filings or otherwise with respect to any regulatory action, administrative proceedings, government investigations, litigation, warning letters, cost reductions, busi
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. STERIS plc By /s/ J. Adam Zangerle J. Adam Zangerle Senior Vice President, General Counsel and Company Secretary Dated: May 31, 2024