STOCK TITAN

Icahn Enterprises L.P. Announces Pricing of Senior Notes

Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Negative)
Tags

Icahn Enterprises (NASDAQ: IEP) has announced the pricing of $500 million in 10.000% Senior Secured Notes due 2029 in a private placement. The Notes will be secured by substantially all assets directly owned by the Issuers and the Guarantor. The offering is expected to close on November 20, 2024. The net proceeds will be used to partially redeem existing 6.250% Senior Notes due 2026. Concurrently, the company will grant a lien to holders of existing notes to ensure equal security with the new Notes.

Icahn Enterprises (NASDAQ: IEP) ha annunciato il prezzo di 500 milioni di dollari in Obbligazioni Senior Garantite al 10.000% con scadenza nel 2029 in una collocazione privata. Le Obbligazioni saranno garantite da sostanzialmente tutti gli attivi direttamente posseduti dagli Emittenti e dal Garante. Si prevede che l'offerta si chiuda il 20 novembre 2024. I proventi netti saranno utilizzati per rimborsare parzialmente le esistenti Obbligazioni Senior al 6.250% con scadenza nel 2026. Contestualmente, la società concederà un diritto di pegno ai possessori delle obbligazioni esistenti per garantire la parità di sicurezza con le nuove Obbligazioni.

Icahn Enterprises (NASDAQ: IEP) ha anunciado el precio de 500 millones de dólares en Notas Senior Aseguradas al 10.000% con vencimiento en 2029 en una colocación privada. Las Notas estarán respaldadas por prácticamente todos los activos directamente poseídos por los Emisores y el Garantizador. Se espera que la oferta se cierre el 20 de noviembre de 2024. Los ingresos netos se utilizarán para redimir parcialmente las Notas Senior existentes al 6.250% con vencimiento en 2026. Al mismo tiempo, la empresa otorgará un gravamen a los tenedores de notas existentes para garantizar una seguridad equitativa con las nuevas Notas.

Icahn Enterprises (NASDAQ: IEP)는 2029년에 만료되는 5억 달러 규모의 10.000% 비상환 우선 채권 가격을 발표했습니다. 이 채권은 발행자 및 보증인이 직접 소유한 거의 모든 자산에 의해 담보됩니다. 이번 공모는 2024년 11월 20일에 마감될 것으로 예상됩니다. 순수익은 2026년에 만료되는 기존 6.250% 우선 채권을 부분적으로 상환하는 데 사용될 것입니다. 아울러, 회사는 기존 채권 보유자에게 새로운 채권과 동등한 담보를 보장하기 위해 권리를 부여할 것입니다.

Icahn Enterprises (NASDAQ: IEP) a annoncé le prix de 500 millions de dollars pour des Obligations Senior Garanties à 10.000% arrivant à échéance en 2029 dans le cadre d'un placement privé. Les Obligations seront sécurisées par pratiquement tous les actifs directement détenus par les Émetteurs et le Garant. L'offre devrait se clôturer le 20 novembre 2024. Les produits nets seront utilisés pour rembourser partiellement les Obligations Senior existantes à 6.250% arrivant à échéance en 2026. Parallèlement, la société accordera un droit de gage aux détenteurs d'obligations existantes pour garantir une sécurité équitable avec les nouvelles Obligations.

Icahn Enterprises (NASDAQ: IEP) hat die Preise für 500 Millionen Dollar in 10.000% Senior Secured Notes mit Fälligkeit 2029 im Rahmen einer Privatplatzierung bekannt gegeben. Die Anleihen werden durch nahezu alle Vermögenswerte, die direkt von den Emittenten und dem Garant gestellt werden, gesichert. Es wird erwartet, dass das Angebot am 20. November 2024 abgeschlossen wird. Die Nettoerlöse sollen verwendet werden, um bestehende 6.250% Senior Notes mit Fälligkeit 2026 teilweise einzulösen. Gleichzeitig wird das Unternehmen einen Pfandrecht für die Inhaber der bestehenden Anleihen gewähren, um gleiche Sicherheit mit den neuen Anleihen zu gewährleisten.

Positive
  • Successful pricing of $500 million senior secured notes
  • Notes will be secured by substantial company assets
  • Refinancing of existing debt with longer maturity (2029)
Negative
  • Higher interest rate of 10% compared to existing 6.25% notes being redeemed
  • Increased debt servicing costs will impact cash flow
  • Need to pledge substantial assets as collateral

Insights

This debt refinancing move by Icahn Enterprises reveals significant challenges in their capital structure. The new $500 million senior secured notes carry a steep 10% interest rate, substantially higher than the 6.25% notes they're replacing. This increased borrowing cost reflects heightened market concerns about IEP's credit risk.

The addition of collateral security for both new and existing notes suggests lenders are demanding stronger protections. This defensive refinancing, while providing near-term liquidity, comes at a considerable cost that will increase annual interest expenses by approximately $18.75 million. The higher coupon rate and need for asset collateralization indicate deteriorating credit market confidence in IEP's financial position.

SUNNY ISLES BEACH, Fla., Nov. 13, 2024 /PRNewswire/ -- 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"), priced their offering of $500,000,000 aggregate principal amount of 10.000% Senior Secured 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 Offering is expected to close on November 20, 2024, subject to customary closing conditions. The Notes will be issued under an indenture by and among the Issuers, Icahn Enterprises Holdings L.P., as guarantor (the "Guarantor"), and Wilmington Trust, National Association, as trustee and collateral agent, and will be guaranteed by the Guarantor. The Notes will be secured by substantially all of the assets directly owned by the Issuers and the Guarantor, subject to customary exceptions. The net proceeds from the Notes Offering will be used to partially redeem the Issuers' existing 6.250% Senior Notes due 2026 (the "2026 Notes"). It is expected that, concurrently with the consummation of the Notes Offering, the Issuers will grant a lien in favor of the holders of the Issuers' 2026 Notes, 5.250% Senior Notes due 2027, 4.375% Senior Notes due 2029, 9.750% Senior Notes due 2029 and 9.000% Senior Notes due 2030 (collectively, the "Existing Notes") such that the Existing Notes are secured equally and ratably with the Notes upon the issuance thereof. There can be no assurance that the issuance and sale of any debt securities will be consummated.

The Notes and related guarantees are being offered 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 guarantees 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 owning subsidiaries currently engaged in the following continuing operating businesses: Investment, Energy, Automotive, Food Packaging, Real Estate, Home Fashion and Pharma.

Caution Concerning Forward-Looking Statements

This release contains certain statements that are, or may 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; the impacts from the Russia/Ukraine conflict and ongoing conflict in the Middle East, including economic volatility and the impacts of export controls and other economic sanctions; risks related to our investment activities, including the nature of the investments made by the private funds in which we invest, including the impact of the use of leverage through options, short sales, swaps, forwards and other derivative instruments; declines in the fair value of our investments, 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, or be taxed as a corporation; risks relating to short sellers and associated litigation and regulatory inquiries; risks related to our general partner and controlling unitholder; pledges of our units by our controlling unitholder; 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, unfavorable refining margin (crack spread), interrupted access to pipelines, significant fluctuations in nitrogen fertilizer demand in the agricultural industry and seasonality of results; volatile commodity pricing and higher industry utilization and oversupply risks relating to potential strategic transactions involving our Energy segment; risks related to our automotive activities and exposure to adverse conditions in the automotive industry, including as a result of the Chapter 11 filing of our automotive parts subsidiary; 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; supply chain issues; inflation, including increased costs of raw materials and shipping; labor shortages and workforce availability; 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, manufacturing disruptions, 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 including our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q under the caption "Risk Factors". 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.

Investor Contact:
Ted Papapostolou, Chief Financial Officer
IR@ielp.com
(800) 255-2737

Cision View original content:https://www.prnewswire.com/news-releases/icahn-enterprises-lp-announces-pricing-of-senior-notes-302304859.html

SOURCE Icahn Enterprises L.P.

FAQ

What is the interest rate and amount of IEP's new senior notes offering?

Icahn Enterprises (IEP) is offering $500 million in senior secured notes with a 10.000% interest rate, due 2029.

When will IEP's new senior notes offering close?

The notes offering is expected to close on November 20, 2024, subject to customary closing conditions.

How will IEP use the proceeds from the new senior notes?

The net proceeds will be used to partially redeem IEP's existing 6.250% Senior Notes due 2026.

What assets secure IEP's new senior notes?

The notes will be secured by substantially all of the assets directly owned by the Issuers and the Guarantor, subject to customary exceptions.

Icahn Enterprises L.P

NASDAQ:IEP

IEP Rankings

IEP Latest News

IEP Stock Data

5.72B
475.46M
0.11%
86.74%
2.23%
Oil & Gas Refining & Marketing
Motor Vehicle Parts & Accessories
Link
United States of America
SUNNY ISLES BEACH