Dupont de Nemours, Inc. and Qnity Electronics, Inc. have announced the pricing of senior secured notes and senior unsecured notes. Qnity priced an offering of $1.0 billion aggregate principal amount of 5.750% senior secured notes due 2032 and $750.0 million aggregate principal amount of 6.250% senior notes due 2033. These notes are being offered in connection with Dupont's previously announced plan to separate its electronics business through a pro rata distribution of Qnity common stock to stockholders of Dupont.
Upon the consummation of the spin-off, the unsecured notes will be guaranteed on a senior unsecured basis, and the secured notes will be guaranteed on a senior secured basis by each Qnity subsidiary that is a borrower or guarantees indebtedness under Qnity's planned senior secured credit facilities. The offering is expected to close on August 15, 2025, subject to customary closing conditions. The gross proceeds of the offering will be held in escrow and released in connection with the completion of the spin-off.
In connection with the spin-off, Qnity expects to enter into a credit agreement providing for a five-year revolving credit facility in the aggregate committed amount of $1.25 billion and a seven-year term loan facility in the aggregate principal amount of $2.35 billion. Each series of notes and the related guarantees were offered in the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933 and outside the United States pursuant to Regulation S under the Securities Act.
Qnity is targeting the completion of the spin-off on November 1, 2025. The spin-off will not require a shareholder vote and is subject to satisfaction of customary conditions, including final approval by Dupont's board of directors, receipt of tax opinion from counsel, the completion and effectiveness of the form 10 registration statement filed with the SEC, applicable regulatory approvals, and satisfactory completion of financing. As a result of these announcements, the company's shares have moved 2.85% on the market, and are now trading at a price of $71.89. For the full picture, make sure to review DuPont de Nemours's 8-K report.
