H.B. Fuller Company FUL recently priced an offering of $850 million in senior unsecured notes to help finance its planned acquisition of Advanced Medical Solutions Group plc (AMS), repay existing debt and other borrowings to support flexible operations.
The offering comprises 7.625% senior unsecured notes due 2034, with an issue price of 100% of the principal amount. The notes will pay interest semiannually. The issuance is expected to close on or around Oct. 21, 2026, subject to customary closing conditions.
H.B. Fuller intends to use the net proceeds, along with available cash and borrowings, to fund the purchase price for the AMS acquisition. The company also plans to repay borrowings under its existing credit agreement and fund the repayment or redemption of its 4.000% notes due Feb. 15, 2027.
The debt offering is linked to the completion of the AMS acquisition. H.B. Fuller had previously agreed to a cooperation agreement dated June 25, 2026, under which, if the acquisition is not completed by June 25, 2027, H.B. Fuller will be required to redeem $450 million of the new notes at 100% of the issue price, plus accrued and unpaid interest. The financing is expected to support H.B. Fuller's acquisition strategy while addressing upcoming debt maturities. A higher interest rate can increase financing expenses, but the impact on leverage and cash flow is yet to be seen.
FUL shares have lost 14.1% in the past year against the industry’s 4.8% growth.
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FUL’s Zacks Rank & Key Picks
FUL currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Reliance, Inc. RS, Air Products and Chemicals, Inc. APD and Axalta Coating Systems Ltd. AXTA.
RS currently sports a Zacks Rank #1 (Strong Buy), and APD and AXTA carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $23.70 per share, indicating a 66.2% year-over-year surge. RSshares have gained 51.2% over the past year.
The Zacks Consensus Estimate for APD’s current fiscal-year earnings is pinned at $13.46 per share, indicating an 11.89% year-over-year rise. APDshares have gained 15.5% over the past year.
The Zacks Consensus Estimate for AXTA’s fiscal 2026 earnings is pegged at $2.63 per share, indicating a year-over-year rise of 5.62%. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, with an average surprise of 6.4%.
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H. B. Fuller Company (FUL): Free Stock Analysis Report
Air Products and Chemicals, Inc. (APD): Free Stock Analysis Report
Reliance, Inc. (RS): Free Stock Analysis Report
Axalta Coating Systems Ltd. (AXTA): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).