Newell Brands offers $500M of senior notes

Newell Brands (NASDAQ: NWL) has announced a public offering of $500 million in senior notes due 2030, with an interest rate of 6.375%. The offering is part of the company’s broader capital structure management strategy and is expected to close on November 13, 2024, subject to customary closing conditions. The net proceeds from the offering will be used to redeem in full the company’s outstanding 4.875% senior notes due 2025 and to partially redeem its 4.200% senior notes due 2026.

This offering follows a similar $500 million note issuance in 2022, where the company issued 6.375% notes due 2027 and 6.625% notes due 2029. Newell Brands has a history of accessing the debt market to manage its debt maturity schedule and optimize its capital structure.

The company’s debt profile remains significant, with $5.0 billion in long-term debt and a debt-to-EBITDA ratio of 14.3x. Despite this, Newell Brands has sufficient liquidity, with $209 million in cash and equivalents, and a cash coverage ratio of 1.61x for near-term debt obligations. The offering is being managed by a group of joint book-running managers, including J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, and BofA Securities, Inc.

Investors are advised to review the prospectus supplement and accompanying prospectus for detailed terms and conditions of the offering.