Food process firm JBT Marel drops after $500 mln convertible debt sale

JBT Marel

05/09/2025 15:43

** Shares of food processing equipment provider JBT Marel Corp JBTM.N down 1.4% at $139.77 early Fri after capital raise

** Chicago, Illinois-based co, formerly John Bean Technologies, late Thurs announced pricing offering of $500 mln 0.375% 5-yr convertible bonds (CBs)

** Initial conversion price of $187.77 is 32.5% above stock's last close

** JBTM shares on Thurs edged up 0.2% to close at $141.71 after co late Weds unveiled the offering to repay or refinance its 0.25% CBs due 2026

** Co also used portion of net proceeds to enter into hedge and warrant transactions to help mitigate dilution

** Strike price of the warrant transactions set at $283.42, double the stock's last sale

** In 2024, JBT Corp completed its acquisition of Iceland's Marel and shares of the combined firm began trading under the ticker "JBTM" on the NYSE and Nasdaq Iceland on Jan 3

** JBTM shares closed at $127.62 on Jan 3

** Avg rating among 5 analysts is "buy" and median PT is $155, latest LSEG data shows

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))