Axalta Leaves $500 Million Of Notes Due In June Unrefinanced As It Awaits AkzoNobel Merger
The coatings maker has put the 4.750% notes in current debt while it prepays term loans and ties its liquidity to merger-agreement limits.
Axalta Coating Systems, which makes paints and finishes for vehicles and industrial products, says it has "intentionally not repaid or refinanced" its $500 million of 4.750% notes due June 15, 2027, according to its quarterly report filed Thursday. The company expects its AkzoNobel merger to close in early 2027, and the notes now sit in current liabilities.
Notes in current debt, term loans shrinking
The company says it expects to repay or refinance the 2027 notes "prior to or on their maturity date." Current borrowings stood at $519 million at September 30, against $20 million at the end of 2025, while long-term borrowings fell to $2,476 million from $3,179 million.
Axalta prepaid $195 million of its 2029 term loans in the first nine months of 2026, and the term loans stood at $1,267 million, down from $1,475 million at year-end. It made no stock repurchases in that period, against $165 million in the first nine months of 2025. The prior quarter's 10-Q had already shown the notes as current debt.
Cash and equivalents were $650 million, against $657 million at year-end. Availability under the revolving credit facility was $768 million, after $32 million of letters of credit.
A refinancing tied to the merger
Axalta says its ability to prepay or refinance debt is "subject to restrictions in the Merger Agreement." The all-stock deal with AkzoNobel was agreed in November 2025, and shareholders of both companies approved it on August 5. The company now expects it to close in early 2027, versus late 2026 to early 2027 in the prior filing.
The merger would trigger a change of control under Axalta's credit agreement. AkzoNobel has agreed to use reasonable best efforts to obtain funds to refinance the 2029 term loans before closing.
Regulators are the reason for an October 20 announcement: Axalta will sell its North American Building Products unit. The deal still needs regulatory approvals.
The quarter behind the balance sheet
Third-quarter net sales rose to $1,311 million from $1,288 million, while net income fell to $95 million from $110 million. Merger and acquisition-related costs rose by $14 million, the company said in its earnings release. Market value was about $7.4 billion in Thursday trading.
The next marker is June 15, 2027, when the $500 million of notes come due.
Sources
- 10-Q Filing — Axalta Coating Systems (AXTA) — SEC EDGAR
- 10-Q Filing — Axalta Coating Systems (AXTA), Q2 FY2026 filed 2026-07-29 (comparison basis) — SEC EDGAR
- Earnings release (8-K Item 2.02, a920268-kquarterlyxex99.htm) — Axalta Coating Systems, filed 2026-10-29 — SEC EDGAR
- Axalta Coating Systems: Q3 Earnings Snapshot – WTOP News — wtop.com
- Axalta Coating Systems (AXTA) Q3 Earnings and Revenues Miss Estimates — Yahoo Finance
- Axalta Coating Systems misses top-line and bottom-line estimates;gives Q4 and updates FY26 | Seeking Alpha — seekingalpha.com
- Axalta Coating Systems Ltd. (AXTA) Merger With Akzo Nobel Offers Cost-Saving Potential, Ariel Global Fund Says — Yahoo Finance
- Axalta Releases Third Quarter 2026 Results — globenewswire.com
