On September 10, TTM Technologies (NASDAQ:TTMI) priced $500 million in senior notes due 2034, carrying a 6.750% coupon. The private sale is expected to close September 24, and it lands in the middle of one of the busiest stretches in company history. TTM is chasing two acquisitions at once, lining up more than a billion dollars in additional term loans, and coming off a quarter where sales jumped 37% year over year. This note sale is less a standalone headline than a window into how hard TTM is willing to spend to keep growing.
The Numbers Behind The Deals
TTM’s momentum is real. Second-quarter net sales hit $1.0 billion, a 37% jump from a year earlier, and GAAP net income rose to $83.0 million, or $0.77 per diluted share, up from $41.5 million and $0.40 a year prior. Non-GAAP net income climbed even faster, to $106.9 million, or $0.99 per share. Adjusted EBITDA reached $166.8 million, a margin of 16.6%, up from 15.0% the year before, which suggests the growth is actually reaching the bottom line rather than being bought with lower prices. Data center and networking work, now 40% of total sales, grew 91% year over year on the back of AI-driven demand, while aerospace and defense grew 14% with backlog topping $1.7 billion.
A book-to-bill ratio of 1.49 means new orders are coming in well ahead of what TTM is shipping out. Against that backdrop, CEO Edwin Roks pointed to pending deals for Swiss Technology Group AG and ILFA GmbH as TTM’s entry into Europe, expected to close in the third quarter. TTM also guides to $1.10 billion to $1.14 billion in third-quarter sales and full-year sales near $4.4 billion, with non-GAAP earnings per share approaching $5.00, none of which even counts the pending acquisitions.
The Price Of Expansion
Funding that expansion is expensive. Beyond the $500 million in notes, TTM is lining up a $300 million incremental term loan A and an $800 million incremental term loan B, more than $1.6 billion in fresh borrowing tied mainly to buying Epiq Solutions and helping cover the Swiss Technology Group deal. That comes right after TTM had already put in place a $1.0 billion revolving credit facility and an upsized term loan B, and net leverage stood at 0.9 times as of the second quarter, before any of this new debt lands on the balance sheet.
The notes themselves carry a structural wrinkle: the offering isn’t conditioned on the Epiq Solutions purchase actually closing, but if that deal isn’t done by November 15, 2026, or is pushed to May 15, 2027 under an extension, TTM is required to redeem the entire $500 million at full principal plus accrued interest. That clause exists because the deal could still fall apart. Layer that uncertainty on top of two acquisitions closing around the same time, plus a 6.750% coupon that will weigh on interest expense for years, and the growth story starts carrying real financial risk alongside it.
What The Market Sees
89 hedge funds held TTM shares in the most recent quarter, up from 64 the quarter before, which points to institutional buyers adding rather than trimming. Short interest sits at 4.42% of the float, enough for a real bear camp without signaling panic. That combination suggests that more investors are buying the growth story than betting against it, even as this new debt load gives skeptics something concrete to point to.
The Bet Investors Are Making
TTM is financing rapid growth with rapid borrowing, and the $500 million note sale is just one piece of a debt stack built to close two acquisitions at once. For that bet to pay off, growth in data center and defense demand needs to keep outrunning the new interest costs stacking up. For skeptics, the redemption clause tied to Epiq Solutions is a reminder that not every piece of this plan is guaranteed to close. Either way, TTM’s balance sheet looks set to be meaningfully different by the time these deals are settled.
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