ADVANCED DRAINAGE SYSTEMS, INC. 8-K

What Happened
Advanced Drainage Systems, Inc. (WMS) announced on February 12, 2026 (8-K filing) that it priced a private offering of $500 million aggregate principal of 5.375% senior unsecured notes due 2034. The offering is expected to close on February 27, 2026, subject to customary closing conditions. The company also elected to exercise its optional redemption rights to redeem all outstanding 5.000% senior notes due 2027 (original aggregate principal $350 million) and instructed the trustee to issue a conditional notice of redemption for a February 27, 2026 redemption date.

Key Details

• New notes: $500 million aggregate principal, 5.375% interest, senior unsecured, maturity 2034; priced Feb 12, 2026; expected close Feb 27, 2026.
• Redemption: All outstanding 5.000% senior notes due 2027 (originally $350 million) selected for optional redemption; redemption price = 100% of principal plus accrued interest to (but excluding) Feb 27, 2026.
• Use of proceeds: Net proceeds from the new notes, together with proceeds of the term loan “B” portion of the existing senior secured credit facility, are intended to refinance the outstanding balance under that credit facility and to redeem the 2027 notes; any remaining proceeds for general corporate purposes.
• Condition: Redemption and payment are conditioned on receipt of necessary proceeds from the debt issuance on terms satisfactory to the company. U.S. Bank Trust Company, N.A. is the trustee for the 2027 notes.

Why It Matters
This is a debt-refinancing move that replaces near-term 2027 debt with longer-dated 2034 unsecured notes, potentially extending the company’s debt maturity profile. Investors should note the interest rate, the $500M size, the $350M of 2027 notes being targeted for redemption, and that the redemption is conditional on closing the new debt offering. These actions affect the company’s capital structure and interest expense profile but are subject to customary closing conditions.