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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