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As a way of saving money to reinvest in the company, Maxim Crane Works Holdings Capital in the USA, has made a partial tender offer to buy a portion of its 10.125 percent Second-Priority Senior Secured Notes that mature in 2024.

The bonds were issued in 2016 at a difficult time in the public debt markets amid the uncertainty surrounding Brexit and other events so the interest rate was high. Maxim has offered to buy the notes or bonds, which are effectively public debt, for cash, up to a total value of $125 million. Sellers will receive a premium. Maxim will then be freed from interest payments to the tune of millions of dollars a year. The saving can be used to directly reinvest in the crane business.

Carl Laurino, Maxim chief financial officer, explained, “Our ability to use some of our available cash resources to reduce our bond debt, particularly with uncertainty in the post-Covid 19 economy is a reflection of the strength of our balance sheet overall. The annual savings of more than $10 million will facilitate greater investments in growth initiatives whether it is in people, our crane fleet or additional locations. To the extent that those growth initiatives are not available, it will result in an acceleration of debt reduction that has been ongoing for us in spite of the global pandemic disruptions.”