Lamb Weston Announces Proposed Private Offering of $835,000,000 of Senior Notes due 2030 and $835,000,000 of Senior Notes due 2032

Rhea-AI Summary

Lamb Weston Holdings, Inc. (NYSE: LW) plans to offer $835 million in senior notes due 2030 and $835 million in senior notes due 2032, subject to market conditions. The proceeds will be used to redeem existing notes due 2024 and 2026. The offering is exempt from registration under the Securities Act and aims to improve the company's financial position. The notes will be guaranteed by the company's material domestic subsidiaries. This press release contains forward-looking statements regarding the company's financial strategies and performance.

Positive

• Total offering of $1.67 billion in senior notes could improve liquidity and financial structure.
• Proceeds will be used to redeem higher-interest existing notes, potentially reducing interest expenses.

Negative

• Issuance of new notes may result in shareholder dilution.
• Uncertainties regarding market conditions could impact the success of the offering.

EAGLE, Idaho--(BUSINESS WIRE)-- Lamb Weston Holdings, Inc. (NYSE: LW) (referred to as “Lamb Weston” or the “Company”) announced today that it is planning, subject to market and other conditions, to offer a total of $835.0 million aggregate principal amount of its senior notes due 2030 (the “2030 Notes”) and $835.0 million aggregate principal amount of its senior notes due 2032 (the “2032 Notes” and, together with the 2030 Notes, the “Notes”) in a private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). It is expected that the Notes will be guaranteed by the Company’s material domestic subsidiaries.

The Company intends to use the net proceeds of the issuance of the Notes, together with available cash, to redeem all of its outstanding 4.625% Senior Notes due 2024 and 4.875% Senior Notes due 2026.

This is not an offer to sell or the solicitation of an offer to buy any securities. The Notes and related guarantees are being offered and sold only to persons reasonably believed to be qualified institutional buyers in reliance on the exemption from registration set forth in Rule 144A under the Securities Act, and outside the United States to non-U.S. persons in reliance on the exemption from registration set forth in Regulation S under the Securities Act. The Notes and the related guarantees have not been registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from the Securities Act and applicable state securities or blue sky laws and foreign securities laws. This press release does not constitute a notice of redemption with respect to the Company’s 4.625% Senior Notes due 2024 or 4.875% Senior Notes due 2026.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. Words such as “plan,” “offer,” “expect,” “will,” “intend,” “redeem,” and variations of such words and similar expressions are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding the offering and sale of the Notes and the redemption of certain of the Company’s existing notes. These forward-looking statements are based on management’s current expectations and are subject to uncertainties and changes in circumstances. Readers of this press release should understand that these statements are not guarantees of performance or results. Many factors could affect the Company’s actual financial results and cause them to vary materially from the expectations contained in the forward-looking statements, including those set forth in this press release. These risks and uncertainties include, among other things: impacts on the Company’s business due to health pandemics or other contagious outbreaks, such as the COVID-19 pandemic, including impacts on demand for its products, increased costs, disruption of supply or other constraints in the availability of key commodities and other necessary services; the availability and prices of raw materials; levels of pension, labor and people-related expenses; the Company’s ability to successfully execute its long-term value creation strategies; the Company’s ability to execute on large capital projects, including construction of new production lines or facilities; the competitive environment and related conditions in the markets in which the Company and its joint ventures operate; political and economic conditions of the countries in which the Company and its joint ventures conduct business and other factors related to its international operations; disruption of the Company’s access to export mechanisms; risks associated with possible acquisitions, including the Company’s ability to complete acquisitions or integrate acquired businesses; its debt levels; changes in the Company’s relationships with its growers or significant customers; the success of the Company’s joint ventures; actions of governments and regulatory factors affecting the Company’s businesses or joint ventures; the ultimate outcome of litigation or any product recalls; the Company’s ability to pay regular quarterly cash dividends and the amounts and timing of any future dividends; and other risks described in the Company’s reports filed from time to time with the Securities and Exchange Commission. The Company cautions readers not to place undue reliance on any forward-looking statements included in this press release, which speak only as of the date of this press release. The Company undertakes no responsibility for updating these statements, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211019005741/en/

Investor Relations:

Dexter Congbalay

224-306-1535

Dexter.Congbalay@lambweston.com



Media:

Shelby Stoolman

208-424-5461

Shelby.Stoolman@lambweston.com

Source: Lamb Weston Holdings, Inc.

FAQ

What is Lamb Weston planning related to its senior notes?

Lamb Weston plans to offer $1.67 billion in senior notes due in 2030 and 2032 to redeem existing notes.

How will the proceeds from the notes offering be used?

The proceeds will be used to redeem $835 million of 4.625% Senior Notes due 2024 and $835 million of 4.875% Senior Notes due 2026.

What are the potential risks associated with Lamb Weston's notes offering?

Potential risks include shareholder dilution and uncertainties in market conditions that may affect the offering's success.

When are the new senior notes due?

The new senior notes are due in 2030 and 2032.

Where is the notes offering being conducted?

The offering is being conducted as a private offering exempt from registration under the Securities Act.