Forum Energy Technologies Secures $100 Million Bond and Plans Strategic Investments

On November 8, 2024, Forum Energy Technologies, Inc. closed a $100 million offering of 10.5% senior secured bonds with a maturity in November 2029. The proceeds will be used to settle outstanding debts from previous acquisitions, particularly related to Variperm Energy Services, and to fully redeem 9.000% Convertible Senior Secured Notes due 2025. Neal Lux, President and CEO of FET, stated the importance of this offering in strengthening their balance sheet and ensuring flexibility for future investments. The redemption of the 2025 Notes will take place on December 8, 2024, which signifies a strategic move to streamline FET's financial obligations. The involvement of ABG Sundal Collier as the manager and bookrunner highlights the professional support FET has garnered during this process. Legal counsel was also provided, ensuring the transaction meets regulatory standards. As a prominent global manufacturer, FET aims to enhance the efficiency and safety of operations within the oil, natural gas, industrial, and renewable energy sectors. By leveraging the net proceeds from their bond issuance, FET is asserting its commitment to reduce net debt while pursuing opportunities for mergers and acquisitions and share repurchases. They are focused on maintaining a conservative leverage ratio moving forward. FET's proactive approach reflects an intent to stabilize their financial framework during challenging market conditions, allowing them to adapt and grow in a competitive landscape while fostering investor confidence in their strategic decisions.