Prestige Consumer Healthcare said its wholly owned subsidiary, Prestige Brands, plans to raise up to $400 million through a new senior notes offering due 2034, then use the proceeds, along with cash on hand, to retire its entire $400 million of outstanding 5.125% senior notes due 2028.
The company said the new debt sale would be paired with a redemption of all of the 2028 notes at 100% of principal, plus accrued and unpaid interest through the redemption date. That means the full $400 million 2028 issue would be taken out if the financing is completed as planned.
Prestige Brands said the redemption is tied to the successful closing of the new notes offering, with the company requiring at least $400 million of new unsecured senior notes before moving ahead. The new notes would be issued as senior unsecured obligations and guaranteed by Prestige Consumer Healthcare and certain domestic subsidiaries.
The move shifts the company’s debt maturity profile from 2028 to 2034, extending the life of the refinanced borrowing by six years. Following these announcements, the company's shares moved -3.06%, and are now trading at a price of $47.91. If you want to know more, read the company's complete 8-K report here.
