Haleon plc: Cash tender offer for outstanding 2027 3.375% Fixed Rate Notes
Rhea-AI Summary
Haleon (LSE/NYSE: HLN) announced a cash tender offer by its subsidiary Haleon US Capital LLC to purchase any and all of its outstanding $1,999,350,000 3.375% Fixed Rate Senior Notes due March 2027, which are fully and unconditionally guaranteed by Haleon.
Holders will receive a price per $1,000 equal to the Total Consideration, calculated using the bid-side yield on the 3.875% U.S. Treasury due March 31, 2027 plus a fixed spread of 10 bps, plus accrued interest to (but excluding) the settlement date. The offer expires at 5:00 p.m. New York City time on 18 August 2026, with price determination expected at 2:00 p.m. the same day and settlement expected on 21 August 2026. The offer is subject to customary conditions, including a New Notes Condition that Haleon US Capital successfully completes a new issue of USD-denominated senior fixed-rate notes. Notes purchased will be cancelled, and tenders are allowed in minimum denominations of $250,000 and integral multiples of $1,000 thereafter.
Positive
- Up to $1.999B of 2027 notes targeted for repurchase, potentially reducing March 2027 bond maturities if fully tendered.
- Tender pricing formula disclosed using 3.875% UST due March 31, 2027 plus a fixed 10 bps spread, adding transparency for investors.
- New USD fixed-rate notes planned as a condition, aligning the transaction with Haleon’s stated objective to manage and optimise its debt portfolio.
- Any and all structure allows Haleon US Capital LLC to retire the entire outstanding 3.375% 2027 series if holders choose to tender.
Negative
- Potential cash outflow up to $1.999B required to repurchase all outstanding 3.375% 2027 notes, subject to take-up and pricing.
- Tender Offer depends on New Notes Condition, creating execution risk if the planned USD senior fixed-rate issuance is not completed on satisfactory terms.
- No minimum tender condition means Haleon could incur transaction costs even if only a small principal amount is tendered.
News Explained
The note repurchase is conditional and potentially partial: $1,999,350,000 is eligible principal, not a committed cash payment.
Haleon has announced—not completed—a conditional tender offer through its subsidiary to repurchase the
The planned new bond issue is a completion condition, while any priority for tendering holders in that issue remains discretionary and is not itself an offer of new bonds.
AI-generated analysis. How Rhea-AI works. Not financial advice.
This Tender Offer is in line with Haleon's previously stated capital allocation priorities. Together, with the planned issue of new bonds, it is expected to help the Company to proactively manage and optimise its debt portfolio.
The Tender Offer is being made upon the terms and subject to the conditions set forth in the Offer to Purchase dated 11 August 2026 (the "Offer to Purchase"). Terms not defined in this announcement have the meanings given to them in the Offer to Purchase.
Upon the terms and subject to the conditions set forth in the Offer to Purchase, the Offeror is offering to purchase any and all of the notes set forth in the table below (the "Notes"). Notes purchased in the Tender Offer will be cancelled. The Tender Offer is not conditioned on any minimum principal amount of Notes being tendered. The consummation of the Tender Offer is subject to, and conditioned upon, the satisfaction or waiver, where permitted, of the conditions discussed in the Offer to Purchase, including the New Notes Condition (as defined in the Offer to Purchase).
Title of Notes(1) | Principal | ISIN/CUSIP | Reference | Fixed | Bloomberg |
| ISIN: CUSIP: |
| 10 bps | FIT3 |
(1) | The Notes are fully and unconditionally guaranteed by Haleon plc. |
(2) | The "Total Consideration" per |
The Tender Offer will expire at 5:00 p.m.,
The consummation of the Tender Offer is subject to, and conditioned upon, the satisfaction or waiver, where permitted, of the conditions discussed in the Offer to Purchase, including the New Notes Condition. The "New Notes Condition" means the condition that the Offeror successfully completes (on terms satisfactory to it in its sole discretion) and settles the proposed offering of USD-denominated Senior Fixed Rate Notes as announced on 11 August 2026.
A Holder that has validly tendered, or indicated its firm intention to tender, its Notes for purchase pursuant to the Tender Offer prior to the Expiration Date and wishes to subscribe for New Notes in addition to tendering Notes for purchase pursuant to the Tender Offer may, after having made a separate application for the purchase of such New Notes to a joint bookrunner of the issue of the New Notes, at the Offeror's sole and absolute discretion, receive priority in the allocation of the New Notes, subject to the issue of the New Notes. The Offeror intends to consider among other factors whether the relevant investor seeking an allocation of New Notes has, prior to such allocation, validly tendered, or given a firm indication to the Offeror or the Dealer Managers that they intend to tender their Notes pursuant to the Tender Offer and if so, the aggregate principal amount of such Notes tendered or intended to be tendered by such investor. Any allocation of the New Notes may, subject to the Offeror's sole and absolute discretion, be less than, equal to or greater than the aggregate principal amount of the Notes tendered or firmly indicated to be tendered. However, the Offeror is not obliged to allocate the New Notes to a Holder who has validly tendered or indicated its firm intention to tender its Notes pursuant to the Tender Offer. Any allocation of the New Notes, while being considered by the Offeror as set out above, will be made in accordance with standard new issue procedures. This announcement is not an offer with respect to any such New Notes.
The Tender Offer is not conditioned on any minimum principal amount of Notes being tendered. Notes may be tendered only in principal amounts equal to the minimum denomination of
Holders who validly tender and who do not validly withdraw Notes at or prior to the Expiration Date and whose Notes are accepted for purchase by the Offeror will receive the "Total Consideration". The Total Consideration payable for the Notes will be a price per
The "Reference Yield" means the bid side yield to maturity, determined in accordance with market convention, of the Reference Security, based on the bid price for the Reference Security as reported on the Bloomberg Reference Page at the Price Determination Time. The sum of the Fixed Spread and the Reference Yield is referred to as the "Repurchase Yield".
The "Price Determination Time" is expected to be 2:00 p.m.,
In addition to the Total Consideration, Holders whose Notes are accepted for purchase will be paid the Accrued Interest on the Settlement Date. Interest will cease to accrue on the Settlement Date for all Notes accepted in the Tender Offer. The Settlement Date will promptly follow the Expiration Date and is expected to be 21 August 2026, which is the third business day after the Expiration Date, unless extended.
Holders are advised to check with any bank, securities broker or other intermediary through which they hold their Notes as to when such intermediary needs to receive instructions from a Holder in order for that Holder to be able to participate in the Tender Offer before the deadlines specified herein and in the Offer to Purchase. The deadlines set by any such intermediary and the Depository Trust Company for the submission and withdrawal of tender instructions will also be earlier than the relevant deadlines specified herein and in the Offer to Purchase.
The results of the Tender Offer are expected to be announced promptly following the Expiration Date.
This press release will be available on www.haleon.com. Copies of the Offer to Purchase are available to holders of the Notes ("Holders") through the Tender and Information Agent, Global Bondholder Services Corporation at its website https://www.gbsc-usa.com/haleon/ or by calling (212) 430-3774 (bank and brokers call collect) or (855) 654-2014 (all others please call toll-free).
The Dealer Managers for the Tender Offer are:
Merrill Lynch International 2 King Edward Street Attention: Liability Management Group Telephone ( Telephone ( Telephone ( Email: DG.LM-EMEA@bofa.com | RBC Capital Markets, LLC Brookfield Place 200 Vesey Street, 8th Floor Attention: Liability Management Group In Toll-Free: (877) 381-2099 Collect: (212) 618-7843 |
The Tender and Information Agent for the Tender Offer is:
Global Bondholder Services Corporation
65 Broadway – Suite 404
Attn: Corporate Actions
Bank and Brokers Call Collect: (212) 430-3774
All Others Please Call Toll-Free: (855) 654-2014
E-mail: contact@gbsc-usa.com
Tender Offer Website: https://www.gbsc-usa.com/haleon/
Non-
This announcement is for informational purposes only and is not an offer to purchase, a solicitation of an offer to purchase or a solicitation of consents with respect to any Notes. This announcement does not describe all the material terms of the Tender Offer and no decision should be made by any Holder on the basis of this announcement. The terms and conditions of the Tender Offer are described in the Offer to Purchase. This announcement must be read in conjunction with the Offer to Purchase. The Offer to Purchase contains important information which should be read carefully before any decision is made with respect to the Tender Offer. If any Holder is in any doubt as to the contents of this announcement, or the Offer to Purchase, or the action it should take, it is recommended to seek its own financial and legal advice, including in respect of any tax consequences, immediately from its stockbroker, bank manager, solicitor, accountant or other independent financial, tax or legal adviser. Any individual or company whose Notes are held on its behalf by a broker, dealer, bank, custodian, trust company or other nominee must contact such entity if it wishes to tender such Notes pursuant to the Tender Offer.
None of the Offeror, Haleon, the Dealer Managers or their affiliates, or the Tender and Information Agent makes any recommendation, or has expressed an opinion, as to whether or not Holders should tender their Notes held by them pursuant to the Tender Offer, or refrain from doing so. Each Holder should make its own decision as to whether to tender its Notes and if so, the principal amount of the Notes to tender.
The Offeror has not filed this announcement or the Offer to Purchase with, and they have not been reviewed by, any federal or state securities commission or regulatory authority of any other country. No authority has passed upon the accuracy or adequacy of the Tender Offer, and it is unlawful and may be a criminal offense to make any representation to the contrary.
The Offer to Purchase does not constitute an offer to purchase Notes in any jurisdiction in which, or to or from any person to or from whom, it is unlawful to make such offer under applicable securities or blue sky laws. The distribution of the Offer to Purchase in certain jurisdictions is restricted by law. Persons into whose possession the Offer to Purchase comes are required by each of the Offeror, Haleon, the Dealer Managers and the Tender and Information Agent to inform themselves about, and to observe, any such restrictions.
Cautionary note regarding forward-looking statements
Certain statements contained in this announcement are, or may be deemed to be, "forward-looking statements" (including for purposes of the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). Forward-looking statements give Haleon's current expectations and projections about future events, including strategic initiatives and future financial condition and performance, and so Haleon's actual results may differ materially from what is expressed or implied by such forward-looking statements. Forward-looking statements sometimes use words such as "expects," "anticipates," "believes," "targets," "plans," "intends," "aims," "projects," "indicates," "may," "might," "will," "should," "potential," "could" and words of similar meaning (or the negative thereof). All statements, other than statements of historical facts, included in this announcement are forward-looking statements. Such forward-looking statements include, but are not limited to, statements relating to future actions, prospective products or product approvals, delivery on strategic initiatives (including but not limited to acquisitions, realizations of efficiencies and responsible business goals), future performance or results of current and anticipated products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, dividend payments and financial results.
Any forward-looking statements made by or on behalf of Haleon speak only as of the date they are made and are based upon the knowledge and information available to Haleon on the date of this announcement. These statements and views may be based on a number of assumptions and, by their nature, involve known and unknown risks, uncertainties and other factors because they relate to events and depend on circumstances that may or may not occur in the future and/or are beyond Haleon's control or precise estimate. Subject to our obligations under English and U.S. law in relation to disclosure and ongoing information, we undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Enquiries
Investors | Media | ||
Jo Russell | +44 7787 392441 | Zoë Bird | +44 7736 746167 |
Rakesh Patel | +44 7552 484646 | Gemma Thomas | +44 7985 175048 |
Email: corporate.media@haleon.com | |||
Treasury | |||
Mike Rowe | +44 7775 012365 | ||
Ben Checkland | +44 7823 370368 | ||
Email: cf-treasury@haleon.com | |||
About Haleon
Haleon (LSE/NYSE: HLN) is a consumer company that is solely focused on better everyday health. Our people, our brands, our research, our investment and our innovation are aimed at improving the everyday health of consumers. Our product portfolio spans six major categories - Oral Health, Vitamins, Minerals and Supplements (VMS), Pain Relief, Respiratory Health, Digestive Health and Therapeutic Skin Health and Other. Our superior brands - such as Advil, Centrum, Otrivin, Panadol, parodontax, Polident, Sensodyne, Theraflu and Voltaren – are trusted by more than one billion consumers and are recommended by health professionals around the world.
For more information, please visit www.haleon.com.
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SOURCE Haleon plc