Crane (NYSE:CR) NXT, Co. (NYSE:CXT), a Delaware-based company specializing in miscellaneous fabricated metal products with a market capitalization of $3.5 billion, has entered into a significant financial agreement, bolstering its capital structure. According to InvestingPro data, the company maintains a strong financial health score and has been profitable over the last twelve months. On Monday, the company amended its existing credit agreement, which now includes an additional $200 million in revolving commitments and £300 million in delayed draw term loan commitments.
The amendment was executed in collaboration with JPMorgan Chase (NYSE:JPM) Bank, N.A., serving as the administrative agent, alongside other lenders. This strategic financial move brings Crane NXT's total revolving commitments to $700 million as of the effective date of the amendment.
The newly secured funds are earmarked for the acquisition of De La Rue (LON:DLAR) plc’s authentication division, known as De La Rue Authentication Solutions, a deal that is subject to customary closing conditions. The additional capital from the delayed draw term loans, coupled with Crane NXT's cash on hand, is intended to facilitate this significant expansion of the company's operations.
As per the regulatory filing with the U.S. Securities and Exchange Commission, the details of the Second Amendment to the credit agreement are publicly available and provide insight into the company's financial strategy. The formal documentation of the agreement has been filed as Exhibit 10.1, which outlines the specifics of the arrangement and the roles of the involved parties. With EBITDA of $349.6 million and trading near its 52-week high, Crane NXT demonstrates solid financial performance. InvestingPro subscribers can access additional financial metrics and expert analysis, including 12+ more ProTips and comprehensive valuation models.
Crane NXT, previously known as Crane Holdings, Co., and before that as CRANE CO /DE/, has a history of strategic name changes dating back to 1992 and 2022, reflecting its evolving business strategy. The company's headquarters are located in Waltham, MA, and it operates under the SIC code 3490 for Miscellaneous Fabricated Metal Products within the manufacturing sector.
In other recent news, Crane NXT reported a robust third quarter, showcasing a 14% year-over-year increase in sales, reaching approximately $400 million, and an adjusted EPS of $1.16. The company's strategic acquisitions, De La Rue Authentication Solutions and Tru Tag's Smart Packaging (NYSE:PKG) technology, are expected to strengthen its market position. Despite predictions of a dip in U.S. currency volume in 2025, Crane NXT remains confident in its long-term growth, supported by the forthcoming redesign of U.S. currency.
The company has adjusted its 2024 sales guidance to a growth range of 6% to 8% and EPS guidance to $4.22-$4.30. However, Crane NXT anticipates a double-digit decline in U.S. currency volume in 2025. The company's net leverage was reported at 1.7x for the quarter, with a projected increase to approximately 2.3x following the De La Rue acquisition.
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