Fortune Brands Issues $900 Million Bond

March 31st, 2022 by Editor

Fortune Brands Home & Security announced that on March 22, 2022, it priced a registered public offering of $900 million in aggregate principal amount of senior unsecured notes consisting of $450 million. This includes an aggregate principal amount of 4.000% senior unsecured notes maturing in 2032 and $450 million aggregate principal amount of 4.500% senior unsecured notes maturing in 2052. Net of interest rate hedges that the Company put in place in anticipation of the offering, the weighted-average interest rate will be approximately 3.950%.

“Our solid business model and track record of performance have supported strong investment grades from all three rating agencies,” said Patrick Hallinan, CFO. “Demand for our offering was strong and was initially over-subscribed by more than four times our targeted capital raise. With the proceeds of this bond issuance, we will pay down a portion of our existing term loan, and we will now have increased flexibility to invest for growth, both organically and inorganically.”

The Company intends to use the net proceeds from the notes offering to pay down a portion of its current term loan and for general corporate purposes. The offering closed on March 25, 2022.

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