McCormick & Company, Incorporated (MKC, Financial), a leading global provider of spices, seasonings, and flavorings, has successfully closed a $500 million debt offering. The company entered into an underwriting agreement with BofA Securities, Inc., Truist Securities, Inc., and Wells Fargo Securities, LLC for the issuance and sale of 4.700% Notes due 2034. This strategic financial move is aimed at repaying a portion of its outstanding commercial paper borrowings and supporting general corporate purposes.
The Notes, registered under the Securities Act of 1933, were issued pursuant to an Indenture dated July 8, 2011, with U.S. Bank Trust Company, National Association serving as trustee. The Notes will bear interest at a rate of 4.700% per annum, with interest payments scheduled semi-annually on April 15 and October 15, beginning in 2025. McCormick & Company retains the option to redeem the Notes prior to maturity, and in the event of a change of control, the company is obligated to offer to purchase the Notes at 101% of their principal amount plus accrued interest.
This issuance is part of McCormick's broader strategy to maintain financial flexibility and support its growth initiatives. The Notes are unsecured senior obligations, ranking equally with the company's other unsecured and unsubordinated indebtedness. The Indenture includes customary covenants and events of default, ensuring robust financial governance.
For more detailed information on the underwriting agreement and the terms of the Notes, interested parties can refer to the company's recent SEC filings.
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