Distribution Solutions Group prices $800M senior notes to fund $35 per share buyout
Distribution Solutions Group announced that Eclipse Acquisitions Merger Sub, controlled by LKCM Headwater, priced an $800 million senior note offering at a 10.000% interest rate, due 2032. The notes were increased from a previously announced $700 million. Proceeds, held in escrow, will finance a cash acquisition of the company’s remaining shares at $35.00 per share, repay existing debt and cover transaction costs. The merger is expected to close on October 15, 2026, subject to shareholder approval.
Why it matters
The company said the proceeds will fund the share acquisition, reduce outstanding indebtedness and pay transaction expenses, which could improve its balance sheet and support the pending merger. Bond investors will receive a 10.00% coupon until 2032, affecting the company’s future interest obligations.
Key facts
- 1The senior notes were priced at $800 million. investing.com
- 2The notes carry a 10.000% interest rate. investing.com
- 3The notes mature in 2032. investing.com
- 4The offering was increased from $700 million. investing.com
- 5The merger is expected to close on October 15, 2026. investing.com
- 6LKCM Headwater will acquire remaining shares for $35.00 per share in cash. investing.com
Summary written by AlphAI from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.