3D Systems strengthens balance sheet with strategic agreements
June 26, 2025
3D Systems, Rock Hill, South Carolina, USA, has announced the closing of a series of strategic transactions to retire/refinance its outstanding 2026 convertible notes and repurchase shares of its common stock.
The company completed separate, privately negotiated agreements with a limited number of qualified institutional buyers to repurchase approximately $180 million in aggregate principal amount of its outstanding 0% convertible senior notes due November 15, 2026 (‘existing notes’) at a price of 94.6% of par. It also issued $92 million aggregate principal amount of new 5.875% convertible senior secured notes due 2030 (‘new notes’).
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In connection with these transactions, 3D Systems has repurchased approximately 8 million shares of its common stock concurrently with the closing of the issuance of new notes. The repurchase represents approximately 6% of 3D Systems’ 136.4 million shares outstanding as of May 2, 2025.
Following closing of these transactions, the company’s balance sheet will reflect:
- Approximately $35 million principal amount of the existing notes, due in November, 2026
- Approximately $92 million principal amount of the new notes due in 2030
- Approximately $140 million of cash to support debt obligations, restructuring activities and ongoing investment in key growth initiatives
The new notes will mature on June 15, 2030, unless earlier converted, redeemed, or repurchased, and will bear interest at a rate of 5.875% per annum, payable semi-annually. The new notes are convertible into shares of 3D Systems common stock at an initial conversion price reflecting a 20% premium to the company’s last reported closing price on the New York Stock Exchange as of June 17, 2025.
In connection with the repurchase of the existing notes at a discount to par, 3D Systems expects to recognise a gain of approximately $10 million in its financial statements for the second quarter.
“We are pleased to announce the successful completion of these refinancing transactions, which mark an important step in the continued strengthening of our capital structure,” stated Dr Jeffrey Graves, president and CEO of 3D Systems. “Aided by our strong cash position, the transactions immediately reduce our overall outstanding debt at an attractive discount, significantly extending our debt maturity profile, while managing potential dilution through a simultaneous share repurchase.
“These transactions follow those of prior periods that have reduced our total debt by over 72% since 2021, with all of the transactions executed at opportunistic periods that have offered meaningful discounts to par value. We believe the transactions position 3D Systems with enhanced financial flexibility and a stronger foundation to continue executing our strategic initiatives and driving long-term value for our shareholders,” Graves concluded.
