Prestige Consumer Healthcare Inc. Announces Upsize and Pricing of $600 Million Senior Notes

Rhea-AI Summary

Prestige Consumer Healthcare Inc. (NYSE: PBH) has priced an upsized offering of $600 million in 3.750% senior notes due 2031, to be completed by March 1, 2021. The proceeds will be used to redeem all outstanding 6.375% senior notes due 2024. The offering is being made only to qualified institutional buyers under Rule 144A of the Securities Act. Prestige Consumer Healthcare markets a diverse range of consumer healthcare products across various countries.

Positive

• Successfully pricing $600 million in senior notes at a favorable 3.750% interest rate.
• Offer proceeds targeted for redeeming higher-interest 6.375% senior notes, improving financial position.

Negative

• None.

TARRYTOWN, N.Y., Feb. 10, 2021 (GLOBE NEWSWIRE) -- Prestige Consumer Healthcare Inc. (NYSE: PBH) (the “Company”) announced today that its wholly-owned subsidiary, Prestige Brands, Inc. (“Prestige Brands”), has priced an upsized offering of $600 million in aggregate principal amount of 3.750% senior notes due 2031 (the “notes”) in a private offering. The sale of the notes is expected to be completed on or about March 1, 2021, subject to customary closing conditions. The notes will be senior unsecured obligations of Prestige Brands and will be guaranteed by the Company and certain of its domestic subsidiaries.

The Company intends to use the net proceeds from the offering, together with cash on hand, to redeem all $600 million of Prestige Brands’ outstanding 6.375% Senior Notes due 2024, and to pay related fees and expenses.

The notes and related guarantees are being offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) or, outside the United States, to persons other than “U.S. persons” in compliance with Regulation S under the Securities Act. This press release does not constitute an offer to sell or the solicitation of an offer to buy the notes and related guarantees. Any offers of the notes and related guarantees will be made only by means of a private offering memorandum. 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 without registration or an applicable exemption from registration requirements.

About Prestige Consumer Healthcare Inc.

Prestige Consumer Healthcare markets, sells, manufactures and distributes consumer healthcare products to retail outlets throughout the U.S. and Canada, Australia, and in certain other international markets. The Company’s diverse portfolio of brands include Monistat^® and Summer’s Eve^® women’s health products, BC^® and Goody’s^® pain relievers, Clear Eyes^® eye care products, DenTek^® specialty oral care products, Dramamine^® motion sickness treatments, Fleet^® enemas and glycerin suppositories, Chloraseptic^® and Luden’s^® sore throat treatments and drops, Compound W^® wart treatments, Little Remedies^® pediatric over-the-counter products, Boudreaux’s Butt Paste^® diaper rash ointments, Nix^® lice treatment, Debrox^® earwax remover, Gaviscon^® antacid in Canada, and Hydralyte^® rehydration products and the Fess^® line of nasal and sinus care products in Australia.

Note Regarding Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of the federal securities laws that are intended to qualify for the Safe Harbor from liability established by the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” generally can be identified by the use of forward-looking terminology such as “assumptions,” “target,” “guidance,” “strategy,” “outlook,” “plans,” “projection,” “may,” “will,” “would,” “expect,” “intend,” “estimate,” “anticipate,” “believe”, “potential,” or “continue” (or the negative or other derivatives of each of these terms) or similar terminology. The “forward-looking statements” include, without limitation, statements regarding the Company’s expectations regarding the completion of the sale of the notes and the redemption of the 2024 notes. These statements are based on management’s estimates and assumptions with respect to future events and financial performance and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results could differ materially from those expected as a result of a variety of factors, including general economic and business conditions.  A discussion of other factors that could cause results to vary is included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2020 and other periodic reports filed with the Securities and Exchange Commission.

Investor Relations Contact
Phil Terpolilli, CFA, 914-524-6819
irinquiries@prestigebrands.com

Source: Prestige Consumer Healthcare Inc.

FAQ

What is the amount of the senior notes offering by Prestige Consumer Healthcare (PBH)?

Prestige Consumer Healthcare announced a $600 million offering of 3.750% senior notes due 2031.

When is the expected completion date for the note offering from PBH?

The completion of the senior notes offering is expected around March 1, 2021.

What will Prestige Consumer Healthcare do with the proceeds from the notes offering?

The proceeds will be used to redeem all outstanding $600 million of 6.375% senior notes due 2024.

Who can purchase the senior notes offered by Prestige Consumer Healthcare (PBH)?

The notes are being offered only to qualified institutional buyers under Rule 144A of the Securities Act.