Lone Star Initiates Change of Control Offers for Hillenbrand's Senior Notes at 101% Repurchase Price
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 09 2026
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Source: Newsfilter
- Bond Repurchase Plan: Lone Star has announced the initiation of Change of Control Offers to repurchase Hillenbrand's 6.25% and 3.75% Senior Notes at a price equal to 101% of their principal amount, aimed at bolstering investor confidence in light of the upcoming merger.
- Merger Context: This repurchase is linked to the merger agreement signed on October 14, 2025, under which Hillenbrand will become a wholly-owned subsidiary of Lone Star, expected to enhance the company's competitive position in the market.
- Impact of Ratings Event: Should the notes be downgraded to non-investment grade post-merger, the repurchase will trigger a Change of Control event, ensuring creditor rights and mitigating potential financial risks.
- Repurchase Conditions: The execution of the repurchase plan is contingent upon the completion of the merger and the occurrence of a Ratings Event, limited to notes that are validly tendered, reflecting a commitment to creditor interests and compliance.
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Analyst Views on HI
Wall Street analysts forecast HI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HI is 32.00 USD with a low forecast of 32.00 USD and a high forecast of 32.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
0 Buy
2 Hold
0 Sell
Hold
Current: 31.860
Low
32.00
Averages
32.00
High
32.00
Current: 31.860
Low
32.00
Averages
32.00
High
32.00
About HI
Hillenbrand, Inc. is a global industrial company that provides processing equipment and solutions. The Company operates through two segments: Advanced Process Solutions and Molding Technology Solutions. Its Advanced Process Solutions segment designs, engineers, manufactures, markets, and services differentiated process and material handling equipment and systems for a variety of industries, including plastics, food and pharmaceuticals, chemicals, fertilizers, minerals, energy, recycling, and other general industrials. Its Molding Technology Solutions segment provides highly engineered equipment, systems, and aftermarket parts and services for the plastic technology processing industry. This segment has a comprehensive product portfolio that includes injection molding and extrusion equipment, hot runner systems, process control systems, mold bases and components, and MRO supplies. Its brands include Coperion, Milacron, Herbold, Shick Esteve, K-Tron and Rotex.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Highland Copper (HI) Sells 34% White Pine Project for Approximately $30 Million
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- Transaction Timeline: The parties aim to close the transaction in January 2026, with a final deadline of February 27, 2026, subject to TSX Venture Exchange approval and other customary conditions, ensuring the company's future stability.
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Lone Star Initiates Change of Control Offers for Hillenbrand's Notes at 101% Repurchase Price
- Bond Repurchase Plan: Lone Star has announced the initiation of Change of Control Offers to repurchase Hillenbrand's 2029 and 2031 Senior Notes at a price equal to 101% of their principal amount, providing additional liquidity to noteholders and enhancing investment appeal.
- Merger Context: This repurchase is linked to the merger agreement signed on October 14, 2025, which will result in Hillenbrand becoming a wholly-owned subsidiary of Lone Star, expected to enhance the company's market position and financial stability.
- Impact of Ratings Event: If the notes are downgraded to non-investment grade during the merger period, the repurchase will trigger a Change of Control event, potentially affecting the company's future financing capabilities and investor confidence.
- Repurchase Conditions: The execution of the repurchase plan is contingent upon the completion of the merger and the occurrence of a Ratings Event, indicating Lone Star's commitment to Hillenbrand's future financial health while providing a clear exit strategy for investors.
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