3D Systems will buy bonds to reduce debt

3D Systems has been struggling for some time with a low share price on the stock exchange and general problems with the profitability of its business. To try to remedy this, the company announced a 0% repurchase agreement for Senior Notes. Their redemption date was set for 2026.

3D Systems will purchase bonds with a total value of approximately USD 135 million at a 26% discount to the nominal value. At the same time, it will pay for the debt buyout with cash from its balance sheet, which it expects to settle more than a quarter of the debt.

Redemptions are expected to complete on December 13, 2023, subject to compliance with customary exchange procedures. The remaining amount of approximately USD 325 million will continue to bear interest at 0%, and its full maturity will take place in November 2026. 3D Systems hopes that the partial redemption of the Bonds will contribute to improving the profitability and share price.

“The announced repurchase of our 2026 notes at a significant discount of approximately $135 million demonstrates proactive obligation management and disciplined execution in the current environment,” commented 3D Systems President and CEO, Dr. Jeffrey Graves. “This transaction will reduce our debt by almost 30% and enhance the strength of our balance sheet. Our current cash reserves remain among the largest in the industry, and combined with our intense focus on cost optimization to ensure sustained profitability and improved cash generation, we believe that 3D Systems is well-positioned to realize the bright long-term future we see ahead yourself.”

Source: www.3dsystems.com