Fortune Brands Issues Bonds To Fund Norcraft Cabinets Acquisition
DEERFIELD, IL - MasterBrand Cabinets parent Fortune Brands  (NYSE: FBHS) priced a $900 million registered public offering of senior unsecured notes that it will use to fund its recent acquisition of Norcraft Cabinets. 
 
The transaction consists of two tranches: $400 million of 5 year notes due 2020 with a coupon of 3.00 percent and $500 million of 10 year notes due 2025 with a coupon of 4.00 percent. FBHS is rated BBB by Standard & Poors and by Fitch; and Baa3 by Moody's. 
 
"Our recent acquisition of Norcraft was not only strategic for our cabinets segment, but also provided an opportunity to secure long-term debt," said Lee Wyatt, Fortune Brands CFO. "With the proceeds used to pay down our revolver, we will have significant financial flexibility to drive incremental growth." 
 
Fortune Brands Home & Security will release second quarter 2015 financial results after the market close on Wednesday, July 22, 2015.
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About the author
Bill Esler | ConfSenior Editor

Bill wrote for WoodworkingNetwork.com, FDMC and Closets & Organized Storage magazines. 

Bill's background includes more than 10 years in print manufacturing management, followed by more than 30 years in business reporting on industrial manufacturing in the forest products industries, including printing and packaging at American Printer (Features Editor) and Graphic Arts Monthly (Editor in Chief) magazines; and in secondary wood manufacturing for WoodworkingNetwork.com.

Bill was deeply involved with the launches of the Woodworking Network Leadership Forum, and the 40 Under 40 Awards programs. He currently reports on technology and business trends and develops conference programs.

In addition to his work as a journalist, Bill supports efforts to expand and improve educational opportunities in the manufacturing sectors, including 10 years on the Print & Graphics Scholarship Foundation; six years with the U.S. WoodLinks; and currently on the Woodwork Career Alliance Education Committee. He is also supports the Greater West Town Training Partnership Woodworking Program, which has trained more than 950 adults for industrial wood manufacturing careers. 

Bill volunteers for Foinse Research Station, a biological field station staddling the border of Ireland and Northern Ireland, one of more than 200 members of the Organization of Biological Field Stations.