H.B. Fuller prices $850M private offering of senior notes

H.B. Fuller Company issued $850 million in senior unsecured notes with a 7.625% interest rate, according to a recent press release. The private offering, exempt from Securities Act registration, is set to mature in 2034 and is expected to close on or around October 21, 2026. Interest payments will be made semi-annually.

The company intends to utilize the net proceeds from the offering, alongside its existing cash reserves and borrowings, for several purposes. These include funding the acquisition of Advanced Medical Solutions Group plc, repaying existing borrowings under a credit agreement from February 2023, and repaying or redeeming its 4.000% notes due in February 2027. Any additional funds raised will be directed towards general corporate uses.

Notably, the notes come with a conditional redemption feature. Should the acquisition not be finalized by June 25, 2027, or if H.B. Fuller declares the cooperation agreement signed on June 25, 2026, terminated, the firm would be obligated to redeem $450 million of the notes at 100% of the initial issue price, inclusive of accrued interest.

These notes are exclusively offered to qualified institutional buyers under Rule 144A or non-U.S. persons outside the United States, under Regulation S. The notes remain unregistered under the Securities Act. H.B. Fuller reported a revenue of $3.5 billion for 2025 and employs over 7,100 individuals across the globe, serving approximately 30 market segments in 150 countries.