Clarios International completes $3.5B in financial transactions; no word on IPO

Clarios International has completed financial transactions in order to pay back about $3.5 billion worth of loans.

Clarios of Glendale announced on Thursday that it had closed a $750 million offering in senior secured notes, and a new tranche in term loans with a principal of $2.75 billion.

Clarios did not comment on these transactions in their press release. A spokesman did not immediately respond to an inquiry for comment.

According to a December update of the prospectus for a potential IPO, the company reported revenue of $9.3 Billion in fiscal 2022 compared to $8.9 Billion in 2022.

Fitch Ratings stated that it had not taken into account the impact of a potential IPO in its forecasts regarding Clarios's business outlook. Fitch described this as stable.

Fitch stated that Clarios had made progress in reducing its debt during fiscal 2022. Fitch also expects Clarios to continue to look for opportunities to reduce debt further over the next few years. Fitch expects Clarios to maintain its high debt levels and leverage over the medium term.

Clarios, in July 2021, halted plans to launch an IPO worth an estimated $1.8 Billion.

Clarios' primary owner is Brookfield Business Partners LP, a Toronto-based company that acquired the former Johnson Controls International battery business (NYSE: JCI), for $13.2 billion.

Clarios' headquarters is located in Glendale, but the company does not manufacture there. Clarios batteries are used in cars, trucks, motorcycles and marine vehicles. They also power industrial products.

Clarios believes that it is the world's largest producer of low voltage batteries, and sells over 150 millions batteries per year to vehicle manufacturers as well as the aftermarket market in more than 100 countries. Clarios' brand names include VARTA and LTH.