Chartwell is pleased to announce that Hypertherm recently raised new capital through an expanded senior credit facility and a new issuance under its senior secured note arrangement (collectively, the “Facilities”) to partially finance a minority equity investment in a European-domiciled target (the “Target”). Through the business combination, Hypertherm will expand its leading position in advanced technologies, grow its share of wallet along the metal fabrication value chain, and acquire complementary sets of technologies that are used across similar end industries with high cross-selling potential.
The senior credit facility, agented by Bank of America, was amended and extended to allow for the cross-border investment to be made and provided Hypertherm with significant operating flexibility on highly favorable terms. Additionally, the quantum of committed capital under the new senior credit facility was increased, and PNC and Wells Fargo were brought into the syndicate to provide Hypertherm with incremental capital for future investments in the Target and additional organic and inorganic growth initiatives.
Separately, Hypertherm amended its current senior secured note agreement provided by Prudential, Barings, and MetLife and utilized proceeds from a shelf note facility to partially finance the initial minority equity investment.
Chartwell acted as exclusive financial advisor to Hypertherm on all aspects of the capital raise and amendment processes including conducting a targeted debt capital market outreach process to syndicate Hypertherm’s senior credit facility and coordinating ratings approval for the newly issued, investment-grade-rated shelf note facility.
About Hypertherm
Founded in 1968, and headquartered in Hanover, New Hampshire, Hypertherm engineers and manufactures industry-leading plasma, waterjet, and laser cutting systems for a variety of end markets including energy, agriculture, shipbuilding, automotive, and construction. Hypertherm’s cutting systems are supported by proprietary consumables, software, and automation technologies. Over its history, Hypertherm has expanded its product offerings and grown into a globally-recognized name in metal-cutting with 2,000+ “associates” operating across five (5) continents and sixty (60) countries.
“Hypertherm thanks Chartwell for continuing to be a trusted financial advisor. Chartwell exhibited a professional and efficient approach over the duration of the amendment and extension processes. Throughout each step of the transaction, Chartwell provided valuable advice that allowed our management team to make highly informed decisions and assist with our next phase of strategic growth and expansion. Our partnership with Chartwell has been instrumental to our success and we look forward to the future”
– John Scott, CFO, Hypertherm
“Chartwell was pleased to assist Hypertherm with this first phase of a transformative multi-step investment process. The initial minority equity investment signals the desire to fortify its position as the preeminent player in the plasma, waterjet, and laser cutting segments. Given Chartwell’s deep relationship with Hypertherm – having previously arranged and placed senior credit and senior secured note facilities – Chartwell confidently executed upon a transaction that best achieved Hypertherm’s goals and objectives. Further, the amended senior credit facility and senior secured note arrangements afford the utmost flexibility at advantageous terms. It was our pleasure to work with a strong management team throughout this process and achieve their strategic objectives. We look forward to continuing to be a resource to Hypertherm as it executes upon its future growth plans.”
– Ryan Rassin, Managing Director, Chartwell
Chartwell Contact
For additional information on this transaction, please contact Will Bloom or Ryan Rassin. To learn more about Chartwell’s corporate finance capabilities, please contact Greg Fresh.