It will also allow the company to put into place amendments to its debt agreements that will increase its financial flexibility.
Announcing the third quarter financial results at the end of October, CEO and chairman Glenn Tellock, talked about the company’s aim of improving cash flow by reducing working capital, and of its ‘aggressive’ debt reduction programme. This new debt offering forms part of that plan. The company said it has exceeded its full year 2009 debt reduction target of USD450m by around USD20m. Since buying Enodis in October 2008, it has reduced its total debt by more than USD750m.
The final amount and date have not been announced, but the company said it tentatively plans an offering of USD400m in the second half of January.
The stock market reacted positively to Friday’s announcement. From USD13.05 at the end of the day on Thurday, Manitowoc shares rose to a high of USD14.57, closing at USD14.05, higher than they have been since the end of September 2008.
