Icahn Enterprises L.P. Announces Closing of $750 Million Senior Notes Offering

Rhea-AI Summary

Icahn Enterprises L.P. (NASDAQ: IEP) has successfully completed a private placement of $750 million in 4.375% Senior Notes due 2029. The net proceeds will be used to redeem part of the existing 6.250% Senior Notes due 2022. The offering was directed towards qualified institutional buyers under Rule 144A and outside the U.S. under Regulation S. The company is a diversified holding entity with operations in various sectors, including investment, energy, automotive, and real estate. Future performance may be affected by numerous risks, including economic downturns and competition.

Positive

• Successful completion of $750 million Senior Notes offering.
• Funds will be utilized to refinance existing higher interest debt.

Negative

• Risks related to economic downturns and competition.
• Potential impacts from the COVID-19 pandemic on various business segments.

SUNNY ISLES BEACH, Fla., Jan. 19, 2021 (GLOBE NEWSWIRE) -- Icahn Enterprises L.P. (NASDAQ: IEP) – Icahn Enterprises L.P. (“Icahn Enterprises”) announced today that it, together with Icahn Enterprises Finance Corp. (together with Icahn Enterprises, the “Issuers”), consummated their offering of $750,000,000 aggregate principal amount of 4.375% Senior Notes due 2029 (the “Notes”) in a private placement not registered under the Securities Act of 1933, as amended (the “Securities Act”) (such offering, the “Notes Offering”). The Notes were issued under an indenture, dated as of the date hereof, by and among the Issuers, Icahn Enterprises Holdings L.P., as guarantor (the “Guarantor”), and Wilmington Trust, National Association, as trustee, and are guaranteed by the Guarantor. The net proceeds from the Notes Offering will be used to redeem a portion of the Issuers’ existing 6.250% Senior Notes due 2022 pursuant to the Issuers’ previously announced notice of conditional redemption.

The Notes and related guarantee were made only (1) in the United States to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act and (2) outside the United States to persons other than “U.S. persons” in compliance with Regulation S under the Securities Act. The Notes and related guarantee have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act. This press release shall not constitute an offer to sell or a solicitation of an offer to buy any securities of the Issuers.

About Icahn Enterprises L.P.

Icahn Enterprises L.P. (NASDAQ: IEP), a master limited partnership, is a diversified holding company engaged in seven primary business segments: Investment, Energy, Automotive, Food Packaging, Metals, Real Estate and Home Fashion.

Caution Concerning Forward-Looking Statements

This release contains certain statements that are, or may be deemed to be, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, many of which are beyond our ability to control or predict. Forward-looking statements may be identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will" or words of similar meaning and include, but are not limited to, statements about the expected future business and financial performance of Icahn Enterprises and its subsidiaries. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors, including risks related to economic downturns, substantial competition and rising operating costs; risks related to the severity, magnitude and duration of the COVID-19 pandemic and its impact on the global economy, financial markets and industries in which our subsidiaries operate; risks related to our investment activities, including the nature of the investments made by the private funds in which we invest, declines in the fair value of our investments as a result of the COVID-19 pandemic, losses in the private funds and loss of key employees; risks related to our ability to continue to conduct our activities in a manner so as to not be deemed an investment company under the Investment Company Act of 1940, as amended; risks related to our energy business, including the volatility and availability of crude oil, other feed stocks and refined products, declines in global demand for crude oil, refined products and liquid transportation fuels as a result of the COVID-19 pandemic, unfavorable refining margin (crack spread), interrupted access to pipelines, significant fluctuations in nitrogen fertilizer demand in the agricultural industry and seasonality of results; risks related to our automotive activities and exposure to adverse conditions in the automotive industry, including as a result of the COVID-19 pandemic; risks related to our food packaging activities, including competition from better capitalized competitors, inability of our suppliers to timely deliver raw materials, and the failure to effectively respond to industry changes in casings technology; risks related to our scrap metals activities, including potential environmental exposure; risks related to our real estate activities, including the extent of any tenant bankruptcies and insolvencies; risks related to our home fashion operations, including changes in the availability and price of raw materials, and changes in transportation costs and delivery times; and other risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission. Additionally, there may be other factors not presently known to us or which we currently consider to be immaterial that may cause our actual results to differ materially from the forward-looking statements. Past performance in our Investment segment is not indicative of future performance. We undertake no obligation to publicly update or review any forward-looking information, whether as a result of new information, future developments or otherwise. 

Contact:
Investor Contact:
SungHwan Cho
Chief Financial Officer
(305) 422-4100 

FAQ

What is the amount raised in Icahn Enterprises' recent bond offering?

Icahn Enterprises raised $750 million through the offering of 4.375% Senior Notes due 2029.

What will the proceeds from the Icahn Enterprises bond offering be used for?

The proceeds will be used to redeem part of the existing 6.250% Senior Notes due 2022.

What is the significance of the offering for Icahn Enterprises' financial strategy?

The offering aims to refinance higher interest debt, potentially reducing interest expenses.

What are the potential risks mentioned in the press release regarding Icahn Enterprises?

The risks include economic downturns, competition, and impacts from the COVID-19 pandemic on their operations.

Which entities are involved in the bond offering by Icahn Enterprises?

The offering was conducted by Icahn Enterprises L.P. and Icahn Enterprises Finance Corp.