Newell Brands (NWL) raises $600M to redeem 2027 notes, repay credit line
Rhea-AI Filing Summary
Newell Brands Inc. (NWL) issued $600,000,000 aggregate principal amount of 6.250% senior notes due 2031 in a transaction exempt from Securities Act registration. The company intends to use the net proceeds to redeem in full its outstanding 6.375% senior notes due 2027, pay related fees and expenses, and repay a portion of the amount outstanding under its five-year asset-based revolving credit facility dated July 30, 2026.
The 2027 notes are to be redeemed on August 20, 2026 at a redemption price of 101.530% of principal, or $1,015.30 per $1,000, plus accrued and unpaid interest. The new notes are senior unsecured obligations issued under an Indenture with U.S. Bank Trust Company, National Association, and include covenants limiting additional debt and guarantees, certain liens, asset sales, affiliate transactions, and distributions, subject to qualifications and exceptions, with some covenants terminating if the notes receive investment grade ratings. Upon a specified change of control combined with a ratings downgrade, holders must be offered repurchase at 101% of principal plus accrued interest.
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Filing Explained
The August 19 filing confirms issuance of
8-K Event Classification
3 items: 1.01, 2.03, 9.01
3 items
Item 1.01
Entry into a Material Definitive Agreement
Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 2.03
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
Financial
The company incurred a new significant debt or off-balance-sheet obligation.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
New notes issued: $600,000,000 aggregate principal amount
Interest rate new notes: 6.250%
Interest rate existing notes: 6.375%
+4 more
7 metrics
New notes issued
$600,000,000 aggregate principal amount
6.250% senior notes due 2031 issued on August 19, 2026
Interest rate new notes
6.250%
Coupon on senior notes due 2031
Interest rate existing notes
6.375%
Coupon on senior notes due 2027 to be redeemed
Redemption price 2027 notes
101.530%
Redemption price of 6.375% senior notes due 2027
Per $1,000 redemption amount
$1,015.30 per $1,000
Cash paid per $1,000 principal of 2027 notes, excluding accrued interest
Change-of-control repurchase price
101% of principal amount
Repurchase price for 2031 notes upon change of control plus ratings downgrade
Redemption date 2027 notes
August 20, 2026
Scheduled redemption date for 6.375% senior notes due 2027
Key Terms
senior notes, Indenture, asset-based revolving credit facility, change of control, +1 more
5 terms
senior notes financial
"issued $600,000,000 of aggregate principal amount of 6.250% senior notes due 2031"
Senior notes are a type of loan that a company borrows from investors, promising to pay it back with interest. They are called "senior" because in case the company faces financial trouble, these lenders are paid back before others. This makes senior notes safer for investors compared to other types of loans or bonds.
Indenture financial
"The Notes were issued pursuant to an Indenture, dated as of August 19, 2026"
An indenture is a legal agreement between a company that borrows money by issuing bonds and the people who buy those bonds. It explains the rules the company must follow, like paying back the money and keeping certain financial promises. This document helps both sides understand their rights and responsibilities.
asset-based revolving credit facility financial
"repay a portion of the amount outstanding under its five-year asset-based revolving credit facility"
A loan arrangement where a lender agrees to make funds available up to a set limit that a borrower can draw, repay, and draw again, with the amount available tied to the value of specific assets (like inventory, receivables, or equipment) pledged as collateral. It matters to investors because it provides flexible working capital while limiting risk exposure: the company can fund growth or cover shortfalls quickly, but borrowing capacity can shrink if asset values fall.
change of control financial
"If a specified event deemed to be a change of control of the Company"
A change of control occurs when the ownership or management of a company shifts significantly, such as through a sale, merger, or acquisition, resulting in new leadership or ownership structure. This change can impact the company's direction and decision-making, which is important for investors because it may affect the company's stability, strategy, and future prospects.
events of default financial
"The Indenture contains customary events of default that include"
Events of default are specific breaches or failures listed in a loan, bond, or credit agreement that give lenders the right to act, such as demanding immediate repayment, raising interest rates, or taking secured assets. They matter to investors because triggering one is like setting off a financial alarm: it raises the chance of foreclosure, restructuring, or bankruptcy and can sharply reduce the value of a company’s stock or bonds and increase borrowing costs.
FAQ
What did Newell Brands Inc. (NWL) announce regarding new debt financing?
Newell Brands Inc. issued $600,000,000 of 6.250% senior notes due 2031 in a private offering. The notes are senior unsecured obligations under an Indenture with U.S. Bank Trust Company and include restrictive covenants on additional debt, liens, asset sales, and distributions.
How will Newell Brands (NWL) use the proceeds from the 6.250% senior notes due 2031?
Newell Brands intends to use net proceeds to redeem its 6.375% senior notes due 2027, pay related fees and expenses, and repay a portion of its five-year asset-based revolving credit facility. This reallocates debt from nearer-term 2027 maturities to 2031.
What is the redemption price for Newell Brands’ (NWL) 6.375% senior notes due 2027?
The 2027 notes are scheduled for redemption at 101.530% of principal, or $1,015.30 per $1,000, plus accrued and unpaid interest. The redemption date disclosed is August 20, 2026, following a supplemental notice to noteholders issued August 18, 2026.
What change-of-control protection do Newell Brands’ (NWL) new 2031 notes provide?
If a specified change of control of Newell Brands and a ratings downgrade both occur, the company must offer to repurchase all outstanding notes at 101% of principal plus accrued interest. This gives noteholders a defined exit price in that scenario.
What key covenants are included in Newell Brands’ (NWL) new Indenture for the 2031 notes?
The Indenture limits the company and subsidiaries from incurring or guaranteeing additional debt, creating certain liens, making specified asset sales, loans and investments, affiliate transactions, or distributions and stock repurchases, with exceptions and partial covenant termination upon investment grade ratings.
Are Newell Brands’ (NWL) new 6.250% senior notes due 2031 registered with the SEC?
The new notes were issued in a transaction exempt from registration under the Securities Act and state laws. They have not been and will not be registered, and may only be offered or sold in the United States under an applicable registration exemption.
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