Summary
This 8-K filing by Church & Dwight Co., Inc. (CHD) reports on a significant financing transaction, detailing the entry into an underwriting agreement on July 20, 2017. The company is issuing an aggregate of $1.425 billion in senior notes across four tranches: $300 million in Floating Rate Senior Notes due 2019, $300 million in 2.450% Senior Notes due 2022, $425 million in 3.150% Senior Notes due 2027, and $400 million in 3.950% Senior Notes due 2047. The primary purpose of this substantial debt issuance is to finance the previously announced acquisition of Water Pik, Inc., cover associated fees and expenses, repay a $200 million term loan facility, and reduce outstanding commercial paper borrowings. This move signals a significant strategic step for Church & Dwight, likely aimed at expanding its market presence and diversifying its portfolio through the Water Pik acquisition.
Key Highlights
- 1Church & Dwight Co., Inc. entered into an underwriting agreement to issue $1.425 billion in senior notes.
- 2The notes are structured into four series: Floating Rate Notes due 2019 ($300M), 2.450% Senior Notes due 2022 ($300M), 3.150% Senior Notes due 2027 ($425M), and 3.950% Senior Notes due 2047 ($400M).
- 3The proceeds from the note issuance are earmarked to fund the acquisition of Water Pik, Inc.
- 4Additional uses of funds include covering acquisition-related fees and expenses.
- 5The financing also aims to repay the company's $200 million term loan facility.
- 6A portion of the commercial paper borrowings will also be repaid with these proceeds.
- 7The notes were registered under the Securities Act of 1933 via an effective shelf registration statement on Form S-3.