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3D Systems cuts debt with $110 million notes repurchase

EditorAhmed Abdulazez Abdulkadir
Published 05/03/2024, 14:00
Updated 05/03/2024, 14:00
© Reuters.

ROCK HILL, S.C. - 3D Systems (NYSE:DDD), a leader in additive manufacturing solutions, has announced the repurchase of $110 million of its 0% Convertible Senior Notes due 2026. The buyback, which represents a 22% discount to the notes' par value, is a strategic move to reduce the company's debt and strengthen its balance sheet.

The transaction, which is set to close on March 8, 2024, will reduce the remaining balance of the outstanding notes to approximately $214 million. This marks a significant reduction from the initial issued principal balance of $460 million. The repurchase will be funded using the company's cash reserves.

President and CEO Dr. Jeffrey Graves stated, "Today's announced additional repurchase of $110 million of our 2026 notes at a significant discount once again demonstrates our approach to proactive liability management and disciplined execution in the current environment." He further emphasized that the company's strong cash position is maintained to support operational needs.

Graves also highlighted that this move, combined with targeted initiatives to drive enhanced gross margins and cost efficiencies, positions 3D Systems favorably for the future. The remaining debt will continue to be held at a 0% interest rate and will fully mature in November 2026.

3D Systems, with over 35 years of experience, has been at the forefront of the 3D printing industry, offering a comprehensive range of hardware, software, materials, and services. The company caters to various advanced applications across healthcare, industrial markets, and sectors such as aerospace & defense, automotive, and durable goods.

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