Fortune Brands Innovations Inc. priced a registered public offering of $600 million in aggregate principal amount of 5.875% senior unsecured notes maturing in 2033. The weighted-average interest rate will be approximately 4.5%, net of interest rate hedges that the Company put in place in late 2021 in anticipation of the offering.
In advance of the notes offering, the Company received an upgraded credit rating from Moody’s to Baa2 Stable from Baa3 Positive.
“Fortune Brands Innovations’ solid business model and track record of sales growth and margin expansion have resulted in BBB-equivalent credit ratings from all three rating agencies,” said Fortune Brands Chief Financial Officer David Barry. “The successful completion of this offering will enable us to continue executing on our strategy of delivering industry-leading brands, innovation, and channel management to our consumers and customers while maintaining an advantaged capital structure.”
The Company intends to use the net proceeds from the notes offering to pay off its 2023 4.000% senior unsecured notes maturing in September 2023, pay down any short-term borrowings and for general corporate purposes. The offering is expected to close on June 14, subject to customary closing conditions.
