TTM Technologies, Inc. (NASDAQ: TTMI) announced plans to offer $500 million in aggregate principal amount of senior notes due 2034. The private offering is exempt from registration under the Securities Act of 1933.

The company intends to use the net proceeds from the notes, combined with expected borrowings from a $300 million incremental senior secured term loan A and a $800 million incremental senior secured term loan B, to fund the proposed acquisition of EDS Intermediate Holding, LLC (Epiq Solutions).

Capital Structure and Guarantees

The notes will be senior unsecured obligations of TTM. They are guaranteed by TTM’s subsidiaries that guarantee its existing senior secured credit facilities, including its term loan B due 2030 and its revolving credit facility. Certain exceptions apply to these guarantees.

Use of Proceeds and Conditions

In addition to funding the Epiq Solutions acquisition, proceeds may be used for general corporate purposes. This includes potentially reducing amounts borrowed under the Revolving Credit Facility to fund the previously announced acquisition of Swiss Technology Group AG (STG). The funds will also cover related fees and expenses.

The offering of the notes is not conditioned on the consummation of the Epiq Solutions acquisition. Conversely, the acquisition is not conditioned upon the closing of the notes offering.

Redemption Clause

If the Epiq Solutions acquisition is not consummated on or before November 15, 2026, TTM must redeem the notes. This date may be automatically extended to May 15, 2027, under certain circumstances. Alternatively, if TTM delivers written notice to the trustee that the acquisition will not occur by the outside date, redemption is required.

The redemption price will equal 100% of the principal amount plus accrued and unpaid interest from the issuance date to the redemption date.

Regulatory Compliance

The notes and related guarantees are being offered solely to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act. They are also offered outside the United States to non-U.S. persons in compliance with Regulation S.

The securities have not been registered under the Securities Act or any other jurisdiction’s securities laws. They may not be offered or sold in the United States absent registration or an applicable exemption.

TTM Technologies (NASDAQ: TTMI) has delivered an average annual return of 18.97% over the past 15 years, significantly outperforming the broader market by 5.53% on an annualized basis. The company currently holds a market capitalization of $14.81 billion.

An investor who purchased $100 worth of TTMI stock 15 years ago would see that position grow to $1,428.37 today. This valuation is based on the stock’s price of $140.57 at the time of writing.

What the Numbers Show

The performance data highlights the impact of long-term compounding on equity investments. The divergence between the company’s annualized return and the market benchmark illustrates TTM Technologies’ ability to generate excess returns over a multi-year horizon.

The key takeaway from this historical performance is the substantial difference compounded returns can make to cash growth over extended periods. This analysis was generated by Benzinga's automated content engine and reviewed by an editor.