The debt offering is made up of $150m in 3.1% notes due by 2030, and $150m in 3.2% notes due by 2032.

The move comes after Curtiss-Wright released its first quarter (Q1) financial results that reported steady results with operating income and sales to increase on the same period last year.

Commenting on the debt valuation Curtiss-Wright chairman and CEO David C. Adams said: “We are very pleased with the tremendous response we received for this debt offering to bolster our strong and healthy balance sheet and also take advantage of historically low-interest rates.”

The company said it aims to use the proceeds from the debt offering for ‘general corporate purposes’. The company said that this ‘may include’ paying down existing debts under existing credit facilities, funding future acquisitions and internal growth initiatives.

Adams added: “This financing will provide Curtiss-Wright with greater flexibility to execute on our balanced capital allocation strategy that consists of reinvesting in our business, supplementing our organic growth with strategic acquisitions, and returning capital to shareholders.

“Together with our strong free cash flow generation, Curtiss-Wright remains well-positioned for future growth.”

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Like other contractors that work across both defence and civilian markets, Curtiss-Wright has benefited from strong defence sales bolstering its operations.

GlobalData Aerospace, Defence and Security analyst Anthony Endresen told Air Force Technology: “Curtiss-Wright first-quarter earnings were better than generally expected, but being led by strong defence sales it is to be expected. Resilience is coming from defence sector work in large part, across the industry.

“Limitation of exposure to the collapse of the commercial markets is a key Covid-19 crisis mitigation incentive, as is capital retention and debt offerings for reinvestment internally. In this case, Curtiss-Wright are using the funds largely for general corporate purposes as well as ensuring cash flow.”

Curtiss-Wright’s finances

In Q1 of 2020, Curtiss-Wright reported net sales of $601m up 4%, and an adjusted operating income of $80m up 10% on the same period for the previous year.

Commenting on the results Adams said: “We delivered solid adjusted diluted EPS of $1.34 in the first quarter, exceeding our expectations, due to strong sales growth in our defence markets, which we expect to remain resilient.

“However, the challenges posed by the Covid-19 pandemic have caused volatility and disruption across our operations and the global economy, with a heightened impact in our most economically-sensitive, industrial end markets. As we moved through the quarter, several of our operations were impacted due primarily to customer-driven delays and government-mandated shutdowns.”

Adams added that the company was ‘a well-positioned, agile business with significant financial flexibility.’ Although, the company predicted that orders may be reduced in later quarters it has ‘ample liquidity’ to maintain operations throughout the rest of the year.

Despite the stable finances, like many companies, Curtiss-Wright suspended its 2020 financial guidance in light of the ongoing effects of the Covid-19 coronavirus pandemic.