Newell Brands holds $1.5 billion tender for 3.15% notes, five others

By Susanna Moon

Chicago, Dec. 4 – Newell Brands Inc. is tendering for its $350 million of 3.15% notes due 2021 along with a maximum amount of five other series until midnight ET on Jan. 4, according to an 8-K filing with the Securities and Exchange Commission.

In the offer for the 3.15% notes, the purchase price will be set using the 1.25% U.S. Treasury note due March 31, 2021 plus 30 basis points.

In the waterfall offers, the company is tendering for an aggregate principal amount equal to $1.5 billion less the amount of the notes purchased in the offer for the 3.15% notes, according to a company announcement.

Pricing will be set using a reference security plus a fixed spread as follows, with the notes listed in order of priority acceptance levels:

• $1.75 billion 5.5% notes due 2046 with pricing to be set using the 3% U.S. Treasury note due Aug. 15, 2048 plus 265 bps;

• $300 million 3.9% notes due 2025 with pricing based on the 3.125% U.S. Treasury note Nov. 15, 2028 plus 180 bps;

• $500 million 5.375% notes due 2036 with pricing based on the 3% U.S. Treasury note Aug. 15, 2048 plus 240 bps;

• $2 billion 4.2% notes due 2026 with pricing based on the 3.125% U.S. Treasury note Nov. 15, 2028 plus 165 bps; and

• $1.75 billion 3.85% notes due 2023 with pricing based on the 2.875% U.S. Treasury note Nov. 30, 2023 plus 138 bps.

For each of the offers, the total purchase price will include an early tender premium of $50 for each $1,000 principal amount of notes tendered before the early deadline of 5 p.m. ET on Dec. 18.

Pricing will be set at 11 a.m. ET on the first business day following the early tender deadline.

Holders will also receive accrued interest.

Tenders may be withdrawn at any time before the early deadline.

Settlement will occur on Dec. 26 for early tenders.

The tender offers will allow the company to repurchase notes and to reduce the amount and cost of its outstanding debt, the release noted.

The company expects to fund the offers with proceeds from divestitures, including that of its Pure Fishing and Jostens businesses, along with cash on hand.

The issuer said it also plans to call any 3.15% notes not tendered in the offer.

Goldman Sachs & Co. LLC (212 357-0215 or 800 828-3182) is the lead dealer manager. RBC Capital Markets, LLC and Wells Fargo Securities, LLC are the co-dealer managers. The information agent and tender agent is Global Bondholder Services Corp. (212 430-3774 or 866 807-2200)

Newell Brands is a consumer goods company based in Hoboken, N.J.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.