Reported Earlier, Organon Prices $1B Dual Series Senior Notes: $500M 6.750% Secured, $500M 7.875% Unsecured, Both Due 2034
Portfolio Pulse from Benzinga Newsdesk
Organon has priced $1 billion in dual series senior notes, split evenly between a 6.750% secured and a 7.875% unsecured note, both maturing in 2034. The proceeds will be used to repay part of their borrowings under the U.S. dollar-denominated 'tranche B' term loan and to cover related fees and expenses.
May 08, 2024 | 8:02 am
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Organon's move to issue $1 billion in senior notes could improve its financial flexibility by refinancing existing debt, potentially leading to a more favorable interest expense structure.
By refinancing a portion of its debt, Organon may reduce its interest expenses and improve its balance sheet, which could be viewed positively by investors. The secured and unsecured nature of the notes provides flexibility, and the use of proceeds indicates proactive financial management.
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