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Icahn Enterprises L.P. Intends to Offer New Senior Notes

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Icahn Enterprises (NASDAQ: IEP) announced plans to offer $500 million in Senior Secured Notes due 2029 through a private placement. The Notes will be secured by substantially all assets directly owned by the Issuers and the Guarantor, with proceeds being used to partially redeem existing 6.250% Senior Notes due 2026. The offering includes granting liens to holders of existing notes to ensure equal security. The Notes will only be offered to qualified institutional buyers in the US under Rule 144A and non-US persons under Regulation S.

Icahn Enterprises (NASDAQ: IEP) ha annunciato piani per offrire 500 milioni di dollari in Note Senior Secured con scadenza nel 2029 attraverso un collocamento privato. Le Note saranno garantite da sostanzialmente tutti i beni direttamente posseduti dagli Emittenti e dal Garante, con i proventi utilizzati per rimborsare parzialmente le esistenti Note Senior al 6,250% in scadenza nel 2026. L'offerta include la concessione di privilegi ai detentori delle note esistenti per garantire una sicurezza paritaria. Le Note saranno offerte solo a compratori istituzionali qualificati negli Stati Uniti ai sensi della Regola 144A e a persone non statunitensi ai sensi della Regolamentazione S.

Icahn Enterprises (NASDAQ: IEP) anunció planes para ofrecer $500 millones en Notas Senior Aseguradas con vencimiento en 2029 a través de una colocación privada. Las Notas estarán garantizadas por prácticamente todos los activos directamente poseídos por los Emisores y el Garante, con los ingresos utilizados para redimir parcialmente las Notas Senior existentes al 6,250% que vencen en 2026. La oferta incluye la concesión de gravámenes a los tenedores de notas existentes para asegurar una igualdad de seguridad. Las Notas solo se ofrecerán a compradores institucionales calificados en EE.UU. bajo la Regla 144A y a personas no estadounidenses bajo la Regulación S.

아이칸 엔터프라이즈 (NASDAQ: IEP)는 사모 방식으로 2029년에 만기가 도래하는 5억 달러 규모의 담보부 채권을 제공할 계획을 발표했습니다. 이 채권은 발행인과 보증인이 직접 소유한 대부분의 자산에 대해 담보가 제공되며, 수익금은 2026년 만기되는 기존 6.250% 채권의 일부를 상환하는 데 사용될 것입니다. 이번 공모에는 기존 채권 보유자에게 동등한 담보를 보장하기 위한 저당권 부여가 포함됩니다. 이 채권은 미국 내 자격 있는 기관 투자자 및 비 미국인에게 규정 S에 따라 제공됩니다.

Icahn Enterprises (NASDAQ: IEP) a annoncé des projets d'offre de 500 millions de dollars en Obligations Senior Sécurisées arrivant à échéance en 2029 par le biais d'un placement privé. Les Obligations seront garanties par l'ensemble des actifs détenus directement par les Émetteurs et le Garant, les recettes étant utilisées pour racheter partiellement les Obligations Senior existantes à 6,250% arrivant à échéance en 2026. L'offre inclut l'octroi de privilèges aux détenteurs d'obligations existantes afin d'assurer une sécurité équitable. Les Obligations ne seront offertes qu'à des acheteurs institutionnels qualifiés aux États-Unis en vertu de la Règle 144A et à des personnes non américaines en vertu de la Réglementation S.

Icahn Enterprises (NASDAQ: IEP) hat Pläne angekündigt, 500 Millionen Dollar an Senior Secured Notes mit Fälligkeit im Jahr 2029 über eine private Platzierung anzubieten. Die Notes werden durch nahezu alle Vermögenswerte besichert, die direkt von den Emittenten und dem Garanten gehalten werden, wobei die Erlöse teilweise zur Rückzahlung bestehender Senior Notes mit 6,250%, die 2026 fällig sind, verwendet werden. Das Angebot umfasst die Gewährung von Pfandrechten an Inhaber bestehender Anleihen zur Sicherstellung einer gleichwertigen Sicherheit. Die Notes werden nur qualifizierten institutionellen Käufern in den USA gemäß Regel 144A und nicht amerikanischen Personen gemäß Regelung S angeboten.

Positive
  • Securing new financing through $500 million senior notes offering
  • Notes will be secured by substantial company assets, providing strong collateral
Negative
  • Taking on new debt to refinance existing obligations
  • Additional liens being granted on company assets

Insights

This $500 million senior secured notes offering marks a significant debt restructuring move by Icahn Enterprises. The new 2029 notes will be used to partially redeem existing 6.25% notes due 2026, potentially improving the company's debt maturity profile. The secured nature of these notes, backed by substantially all assets of the issuers and guarantor, provides stronger protection for noteholders compared to unsecured debt.

A notable aspect is the concurrent plan to grant equal security rights to holders of existing notes, including those with rates ranging from 4.375% to 9.75%. This pari passu treatment suggests a defensive move to maintain existing noteholder relationships while managing refinancing needs. The private placement structure, to qualified institutional buyers and non-U.S. persons, indicates a strategic choice to expedite the process while potentially securing better terms than a public offering.

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"), intends to commence an offering of $500,000,000 aggregate principal amount of Senior Secured Notes due 2029 (the "Notes") for issuance in a private placement not registered under the Securities Act of 1933, as amended (the "Securities Act"). 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 offering will be used, together with cash on hand, 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 of the Issuers 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-intends-to-offer-new-senior-notes-302304202.html

SOURCE Icahn Enterprises L.P.

FAQ

What is the size of Icahn Enterprises' (IEP) new senior notes offering in November 2023?

Icahn Enterprises announced a $500 million aggregate principal amount of Senior Secured Notes due 2029.

How will IEP use the proceeds from the 2029 Senior Notes offering?

The proceeds will be used, together with cash on hand, to partially redeem the company's existing 6.250% Senior Notes due 2026.

What security is being provided for IEP's new 2029 Senior Notes?

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

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