Tupperware Brands Corp. is seeking to ease its debt burden, because the consumer-products firm enters a brand new section in its effort to show round a enterprise fighting coronavirus lockdowns and shifts in purchasing habits.
The publicly listed firm on Tuesday is launching a proposal to repurchase at a deep low cost about one-third of a $600 million bond that falls due a 12 months from now. The technique is to ease monetary stress on the corporate, rising its probabilities of repaying the bond on time and serving to it meet pointers for its numerous financial institution loans, an individual aware of the matter mentioned.
Tupperware provided to purchase again $175 million face quantity of the debt at a worth of 45 cents on the greenback and gave bond traders a June 22 deadline to participate within the deal. If it achieves full participation, the corporate would spend about $79 million to retire the debt early. Boutique investment financial institution Moelis & Co. is the supervisor of the transaction and Kirkland & Ellis LLP is appearing as authorized adviser.
Modifications in how customers store had already weakened Tupperware earlier than the coronavirus pandemic shut down social interplay globally. Nonetheless, its bonds had a triple-B investment-grade credit standing from Moody’s Investors Service till not too long ago. In February, the rankings agency lower Tupperware bonds to single-B citing declining gross sales, the impression of the virus and a monetary restatement tied to reporting errors by its magnificence enterprise in Mexico. Tupperware mentioned in March that accounting points associated to the unit didn’t have a fabric impact on its monetary outcomes or evaluation of inner controls.