Wabtec Announces Terms and Pricing of Senior Debt Offering
Wabtec Corporation , a global leader in rail technology solutions, announced the pricing of a public debt offering totaling $1.25 billion. The offering comprises two tranches of senior unsecured notes: $500 million in 4.900% Senior Notes due in 2030 and $750 million in 5.500% Senior Notes due in 2035. These new debt securities will be fully and unconditionally guaranteed by Wabtec’s existing and future subsidiaries that currently, or in the future, guarantee the company’s credit facilities or any other outstanding debt obligations.
This significant capital raise underscores Wabtec’s proactive financial management strategy as it positions itself for continued growth, upcoming debt maturities, and strategic acquisitions.
Structure and Terms of the Offering
The 4.900% Senior Notes due 2030 (the “2030 Notes”) and the 5.500% Senior Notes due 2035 (the “2035 Notes,” and together with the 2030 Notes, the “Notes”) will bear interest payable semi-annually in arrears. Both tranches will mature on May 29 of their respective maturity years—2030 and 2035—unless earlier redeemed or repurchased in accordance with their terms.
The Notes will be issued as senior unsecured obligations, ranking equally in right of payment with Wabtec’s existing and future senior unsecured indebtedness. The guarantees from Wabtec’s subsidiaries further enhance the credit profile of the offering, providing an additional layer of security to investors.
The closing of the offering is scheduled to occur on May 29, 2025, subject to customary closing conditions.
Strategic Use of Proceeds
Wabtec has outlined a clear and strategic allocation plan for the net proceeds from this offering. A primary portion of the funds will be used to repay the company’s $500 million of 3.200% Senior Notes due 2025, which are set to mature on June 15, 2025. By refinancing this upcoming maturity with the new 2030 Notes, Wabtec aims to extend its debt maturity profile while maintaining a disciplined approach to interest rate management amid a volatile macroeconomic environment.
In addition to debt refinancing, the company plans to allocate a significant portion of the proceeds toward funding its previously announced acquisition of the Inspection Technologies division of Evident Corporation, a provider of advanced nondestructive testing and imaging solutions. This acquisition, once completed, is expected to bolster Wabtec’s technology portfolio and strengthen its competitive positioning in the rail and industrial inspection sectors. Proceeds will also be used to cover related transaction fees and expenses.
Wabtec views the acquisition as a strategic opportunity to enhance its offerings in precision measurement and safety diagnostics—an area of increasing importance across freight rail, transit, and industrial markets. The purchase reflects Wabtec’s long-term commitment to innovation and operational efficiency.
Capital Markets Execution
The offering is being led by a consortium of prominent financial institutions, including BNP Paribas Securities Corp., BofA Securities, Inc., HSBC Securities (USA) Inc., and J.P. Morgan Securities LLC, who are acting as joint book-running managers. Their involvement reflects the strong investor confidence in Wabtec’s financial performance and future prospects.
The issuance is being made pursuant to an automatic shelf registration statement on Form S-3 (File No. 333-275386), which Wabtec originally filed with the Securities and Exchange Commission (SEC) on November 8, 2023. This filing was subsequently amended by a Post-Effective Amendment No. 1 on May 19, 2025. The offering is being conducted in compliance with U.S. securities laws, and may be made only by means of a prospectus and the accompanying prospectus supplement filed with the SEC.
Investors are encouraged to review the registration statement, prospectus, and prospectus supplement for more detailed information about the terms of the Notes, the risks involved, and Wabtec’s overall financial profile.
Legal Disclaimers
Wabtec emphasized that the press release announcing the pricing of the Notes does not constitute an offer to sell or a solicitation of an offer to buy the securities described therein. Such offers or sales would only be made in jurisdictions where such activities are lawful and compliant with local securities regulations. Furthermore, no sales of these securities will be made prior to the effective registration or qualification under applicable securities laws.
The Notes are not being offered or sold to the general public without a valid prospectus, and interested investors are advised to consult the full registration documents available through the SEC’s public database.
Financial Position and Market Outlook
The senior notes offering comes at a pivotal time for Wabtec, as the company continues to navigate a complex economic landscape marked by evolving transportation demand, inflationary pressures, and an increased emphasis on environmental sustainability. Wabtec’s ability to access capital markets on favorable terms demonstrates its strong creditworthiness and investor appeal.
Over the past several years, Wabtec has strategically grown through both organic initiatives and targeted acquisitions. Its recent transactions have focused on expanding its portfolio in areas like automation, digital rail, fuel efficiency, and now advanced inspection technologies. These investments align with the long-term modernization trends in the rail sector and the broader industrial economy.
Wabtec maintains a solid investment-grade credit profile, supported by consistent cash flow generation, a diversified revenue base, and disciplined capital deployment. The company’s most recent earnings results highlight steady growth in revenue and operating income, driven by robust demand for freight and transit solutions as global supply chains continue to evolve.
The proceeds from the Notes will allow Wabtec to maintain flexibility while executing its strategic objectives without compromising its balance sheet strength. By managing its debt maturities proactively, the company is positioning itself to remain resilient and growth-oriented in both stable and uncertain market conditions.
About Wabtec Corporation
Wabtec Corporation is a global leader in the design, manufacture, and servicing of equipment and technology for the freight rail and passenger transit industries. With over 150 years of experience, Wabtec combines deep industry expertise with a robust portfolio of products that improve safety, reliability, and efficiency for rail operators and industrial clients.
The company’s solutions span across locomotives, digital train control systems, brake and propulsion components, and now, increasingly, digital diagnostics and inspection tools. Headquartered in Pittsburgh, Pennsylvania, Wabtec operates in more than 50 countries and employs over 27,000 people worldwide.
As the rail sector transitions toward greater sustainability and digital integration, Wabtec is at the forefront of developing next-generation rail and industrial solutions. Its innovation-driven strategy aims to deliver long-term value for shareholders, customers, and society.