Newell Brands plans $1 billion notes offering

ATLANTA - Newell Brands (NASDAQ:NWL), a consumer goods conglomerate known for brands such as Rubbermaid and Sharpie, announced its intention to offer $1 billion in senior unsecured notes due in 2028. The company’s stock, which has gained 8.44% over the past year and trades at $12,694.10, has shown resilience with a 2.78% increase year-to-date. InvestingPro subscribers can access detailed financial health metrics and exclusive analysis in the comprehensive Pro Research Report, one of 1,400+ available for top US stocks. The private offering is exempt from the registration requirements of the Securities Act of 1933 and is contingent on market conditions, with no guarantee of completion or terms.

The company aims to use the net proceeds, alongside existing cash, to redeem its 4.200% senior notes due 2026 and cover associated fees and expenses. This press release does not serve as a redemption notice for the 2026 notes nor an offer to purchase them.

The offering targets qualified institutional buyers under Rule 144A and non-U.S. persons outside the United States under Regulation S, avoiding the need for registration under the Securities Act and applicable state and foreign securities laws.

This announcement includes forward-looking statements regarding the offering and its use of proceeds. Newell Brands cautions that actual results may differ from these projections due to various factors detailed in its SEC filings, including its Annual Report for 2024 and its Quarterly Report for Q1 2025.

The information in this article is based on a press release statement from Newell Brands.

In other recent news, Newell Rubbermaid’s financial performance and analyst evaluations have drawn attention. The company recently reported its fourth-quarter earnings, which exceeded expectations in terms of earnings per share, despite weaker core sales and operating profit margins. Following these results, Truist Securities maintained a Buy rating with a $17 price target, while Canaccord Genuity also retained a Buy rating but adjusted their price target to $14. UBS and Citi, however, opted for a more cautious approach, both maintaining Neutral ratings and lowering their price targets to $8 and $7.75, respectively.

The company’s initial guidance for 2025 has been met with mixed reactions. Truist found the guidance to be benign, while UBS and Citi expressed concerns over the uncertainties related to tariffs and macroeconomic factors. Canaccord highlighted Newell’s domestic manufacturing capabilities as a competitive advantage, despite the tariff concerns. The company’s exposure to China sourcing is currently at 15%, with significant domestic manufacturing presence. Analysts have noted that Newell’s guidance relies heavily on the latter half of the year, adding to the uncertainty.

The market’s reaction to Newell Rubbermaid’s announcements included a significant 26% drop in share price, which some analysts, like those at Truist and Canaccord, viewed as an overreaction. Despite the challenges, Canaccord and Truist remain optimistic about the company’s long-term prospects, encouraging investors to consider the current stock valuation as a potential buying opportunity. Meanwhile, UBS and Citi suggest a more cautious stance, advising investors to wait for clearer signs of improvement before making significant moves.

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