On May 2, 2025, Cintas Corporation (NASDAQ: CTAS) filed an 8-K report unveiling the issuance of $400 million aggregate principal amount of 4.200% Senior Notes due 2028 by Cintas Corporation No. 2. This refinancing move is a strategic financial step reinforcing Cintas’s capital structure and supporting its sustained growth initiatives. View the source document.
Cintas Corporation, a leading provider of specialized products and services to businesses, including uniform rental and facility services, first aid and safety, and fire protection.
Issuance of $400 million senior notes at a fixed coupon of 4.200% maturing in 2028.
Announced on May 2, 2025, the notes were underwritten by KeyBanc Capital Markets Inc., MUFG Securities Americas Inc., and Wells Fargo Securities, executed under a registration statement initially filed on January 8, 2024.
As of the most recent fiscal quarter ending February 28, 2025 (Q3 2025), Cintas recorded total liabilities of approximately \(5.07 billion, with long-term debt constituting about \)2.03 billion. This senior notes issuance increases Cintas’s long-term debt but also optimizes their borrowing costs given current interest rate environments.
Previously, Cintas demonstrated robust financial performance with operating income growth and strong cash flow generation. For Q3 2025, operating income increased by 120 basis points to 21.6% of revenue, reflecting improved operational efficiencies driven by technology investments such as the proprietary SmartTruck routing system and strategic partnerships with SAP, Verizon, and Google Cloud.
The debt issuance aligns with Cintas’s capital allocation strategy focused on fueling acquisition growth, technological evolution, and share repurchases. In the preceding nine months, Cintas acquired 67 businesses in Uniform Rental and Facility Services and 31 in First Aid and Safety Services, investing nearly $199 million in acquisitions, thus expanding their market footprint and service capabilities.
Fiscal 2025 Q3 diluted EPS rose 17.7% year-over-year to $1.13.
Net income increased to \(463.5 million from \)397.6 million the prior year.
Free cash flow surged, supporting $92.9 million in Q1 2025 capital expenditures focused on technology, automation, and capacity expansion.
Guidance for fiscal 2025 projects revenue between \(10.16 billion and \)10.31 billion, representing organic growth of 6.4% to 8% after adjusting for fewer workdays and foreign currency impacts.
Cintas CEO Todd M. Schneider emphasized the company’s confidence in continued growth, driven by strong customer retention, new business pipelines, and technology investments. They are in the early innings of digital transformation with SmartTruck technology and are leveraging strategic partnerships to enhance efficiencies and customer experiences. The company also highlighted resilience to economic uncertainty and tariff exposure as minimal to negligible at this stage.
This $400 million senior note issuance at a fixed 4.2% coupon due 2028 provides Cintas Corporation with financial flexibility to pursue growth opportunities, optimize capital structure, and enhance shareholder value. Given their strong operational momentum, strategic acquisitions, and technology investments, the debt proceeds are positioned to support sustainable margin expansion and EPS growth through fiscal 2025 and beyond.
This financing event exemplifies a disciplined approach to balancing leverage and growth, in line with Cintas’s history of maintaining a robust balance sheet and generating industry-leading returns.
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