Madison Air Prices $2.25B Private Placement at $24.97 to Fund ebm-papst Deal
MAIR is trading near its 52-week low of $24.75 (4.2% above the low).
Summary
Madison Air announced a $2.25 billion private placement of 90.1 million shares at $24.97 per share, a 3.2% discount to the last close. Chairman Larry Gies is buying $300 million and his affiliate Madison Solutions another $320 million, signaling strong insider support. Proceeds fully fund the equity portion of the $5.0 billion ebm-papst acquisition, with the remainder from $2.8 billion of debt and cash. The company expects pro forma net leverage of 3.7x, targeting below 2.5x within two years. The deal is expected to close around year-end, subject to regulatory approvals. This follows the August 17 announcement of the ebm-papst acquisition and the July 30 Q2 results showing 21% revenue growth and a record backlog.
At the time of this announcement, MAIR was trading at $25.79 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $12.5B. The 52-week trading range was $24.75 to $44.50. This news item was assessed with neutral market sentiment and an importance score of 9 out of 10. Source: PR Newswire.