8-KFinancial EventsExhibits & Filings

CHURCH & DWIGHT CO INC /DE/ 8-K Report, Financial Obligation (Jun 2, 2022)

Filed June 2, 2022For Securities:CHD

Summary

Church & Dwight Co., Inc. (CHD) announced on June 2, 2022, the successful completion of a $500 million public offering of 5.000% Senior Notes due 2052. The primary purpose of this debt issuance is to refinance upcoming maturities of existing debt, specifically addressing the $300 million in 2.45% Senior Notes due August 1, 2022, and the $400 million in 2.875% Senior Notes due October 1, 2022. This strategic move extends the company's debt maturity profile and secures long-term funding. Investors should note the new notes carry a higher interest rate of 5.000% compared to the notes being repaid, reflecting the then-current interest rate environment. The notes are senior unsecured obligations, ranking equally with other senior unsecured debt but are effectively subordinated to any secured debt and structurally subordinated to the obligations of subsidiaries. The company has flexibility in redeeming the notes prior to maturity under specific conditions, including a 'Par Call' option six months before maturity.

Key Highlights

  • 1Completed a $500 million public offering of 5.000% Senior Notes due 2052.
  • 2Proceeds will be used to repay $700 million of maturing debt ($300M due Aug 1, 2022 and $400M due Oct 1, 2022).
  • 3The new notes carry a higher coupon (5.000%) than the maturing notes (2.45% and 2.875%).
  • 4The Notes are senior unsecured obligations, equal in right of payment to other senior unsecured debt.
  • 5Notes are effectively subordinated to secured debt and structurally subordinated to subsidiaries' obligations.
  • 6The company retains the option to redeem the Notes early, with specific terms and redemption prices outlined.
  • 7The offering extends the company's long-term debt maturity profile.

Frequently Asked Questions

The primary reason for issuing the $500 million in Senior Notes due 2052 is to refinance and repay the company's $300 million of 2.45% Senior Notes due August 1, 2022, and its $400 million of 2.875% Senior Notes due October 1, 2022. This effectively extends the company's debt maturity.

The new 5.000% Senior Notes due 2052 carry a higher interest rate compared to the 2.45% Senior Notes due August 1, 2022, and the 2.875% Senior Notes due October 1, 2022. This reflects prevailing market interest rates at the time of issuance.

The Notes are senior unsecured obligations, meaning they rank equally in right of payment with the Company's other existing senior unsecured debt. However, they are effectively subordinated to any secured debt the company may have, as secured debt is backed by collateral. They are also structurally subordinated to all future and existing obligations of the company's subsidiaries.

Yes, the company has the option to redeem some or all of the Notes. Prior to six months before maturity (the 'Par Call Date' of December 15, 2051), redemption would occur at a price based on present values plus a spread. On or after the Par Call Date, the company can redeem the notes at 100% of the principal amount.