Reynolds Consumer Products Inc. (Nasdaq: REYN) has successfully refinanced $1.645 billion of its existing term loan, extending its debt maturity to 2032 and securing improved borrowing terms, the company announced Tuesday.
JP Morgan served as the lead-left arranger on the refinancing, which extends the company’s loan maturity by five years. The new loan carries an interest rate of the Secured Overnight Financing Rate (SOFR) plus 175 basis points, reflecting a 10 basis point reduction in credit spread compared to the previous rate.
The refinancing is part of the company’s broader financial strategy to enhance flexibility and maintain capital efficiency, said Chief Financial Officer Nathan Lowe.
“We are very pleased with the successful completion of this refinancing, which underscores the strength of our credit profile, strong free cash flow and disciplined capital management,” Lowe said. “With these improved terms and our upsized revolving credit facility announced in October, we are even better positioned to support our strategic priorities and create long-term value for our shareholders.”
Reynolds Consumer Products, known for brands such as Reynolds Wrap aluminum foil and Hefty trash bags, has a presence in 95% of U.S. households and holds a leading market share in its product categories.
