EDEN PRAIRIE, Minn.,
July 8, 2019 /PRNewswire/
-- MTS Systems Corporation (NASDAQ: MTSC) (the
"Company"), a leading global supplier of high-performance test
systems, motion simulators and sensors, today announced that it has
launched an offering of $300 million
aggregate principal amount of new Senior Unsecured Notes Due 2027
(the "Notes"). The Company intends to use the net proceeds from the
offering to repay the outstanding balance of the senior secured
revolving credit facility, to repay a portion of the term loan B
facility due in 2023, and to pay related transaction fees and
expenses.
"We are taking advantage of historically low, long-term interest
rates to further optimize our capital structure," stated
Brian Ross, Executive Vice President
and CFO.
Consummation of the offering is subject to market and other
conditions. There can be no assurance that the Company will be able
to successfully complete the offering on the terms described above,
or at all.
The Notes will not be registered under the Securities Act of
1933, as amended (the "Securities Act"), or any state securities
law and may not be offered or sold within the United States or to or for the account of
any U.S. person, except pursuant to an exemption from the
registration requirements thereof. Accordingly, the Notes
will be offered and sold only to (i) persons reasonably believed to
be "qualified institutional buyers" (as defined in Rule 144A under
the Securities Act) and (ii) non-"U.S. persons" who are outside
the United States (as defined in
Regulation S under the Securities Act).
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy the Notes.
Following this offering, the Company anticipates increasing by
up to $50 million its senior secured
revolving credit facility.
FORWARD-LOOKING STATEMENTS
This release contains "forward-looking statements" made pursuant
to the safe harbor provision of the Private Securities Litigation
Reform Act of 1995 that are subject to certain risks and
uncertainties, as well as assumptions, that could cause actual
results to differ materially from historical results and those
presently anticipated or projected. Statements made under the
heading "Outlook" are forward-looking statements, and words such as
"may," "will," "should," "expects," "intends," "projects," "plans,"
"believes," "estimates," "targets," "anticipates," and similar
expressions identify forward-looking statements in other parts of
this release. Such statements include, but are not limited to,
statements about the timing and impact of the proposed offering,
the expected use of proceeds from the offering, the anticipation of
increasing the senior secured revolving credit facility and other
statements that are not historical facts. These statements are
based on our current expectations and beliefs and are subject to a
number of risks, uncertainties and assumptions that could cause
actual results to differ materially from those described in the
forward-looking statements. Risks, uncertainties and assumptions
that could cause our actual results to differ materially from those
discussed in the forward-looking statements include, but are not
limited to, those described in the "Risk Factors" section of our
most recent Annual Report on Form 10-K filed with the Securities
and Exchange Commission ("SEC") and updated in any subsequent
Quarterly Reports on Form 10-Q and other filings with the SEC. The
reports referenced above are available on our website at
www.mts.com or on the SEC's website at www.sec.gov. Forward-looking
statements speak only as of the date on which such statements are
made, and we undertake no obligation to update any forward-looking
statement to reflect events or circumstances after the date on
which such statement is made to reflect the occurrence of
unanticipated events or circumstances.
About MTS Systems Corporation
MTS Systems Corporation's testing and simulation hardware,
software and service solutions help customers accelerate and
improve their design, development and manufacturing processes and
are used for determining the mechanical behavior of materials,
products and structures. MTS' high-performance sensors provide
measurements of vibration, pressure, position, force and sound in a
variety of applications. MTS had 3,400 employees as of September 29, 2018 and revenue of $778 million for the fiscal year ended
September 29, 2018. Additional
information on MTS can be found at: http://www.mts.com
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SOURCE MTS Systems Corporation