Tupperware Brands Corporation Advances Capital Structure Improvement With Commitment to Refinance Senior Notes Maturing in 2021; No Debt Maturities Until Q4 2023 Assuming Successful Refinancing
Tupperware Brands Corporation (NYSE: TUP) (“Tupperware”) today announced next steps for improving its capital structure and refinancing its Senior Notes maturing in June 2021.
Tupperware has entered into a commitment letter with Angelo, Gordon & Co., L.P. and JPMorgan Chase Bank, N.A., within its Strategic Situations Initiative, pursuant to which Angelo Gordon and J.P. Morgan have agreed to provide Tupperware two term loan facilities in an aggregate principal amount of $275 million. Tupperware intends to use the proceeds from the term loan facilities and cash on hand to redeem all of its outstanding Senior Notes in the aggregate principal amount of $380.2 million and to pay related fees and expenses. Tupperware expects to issue a conditional notice of redemption to holders of the Senior Notes as set forth in the indenture governing the Senior Notes. Assuming successful consummation of the term loan facilities and related redemption of Tupperware’s Senior Notes, Tupperware will not have any debt maturing until the fourth quarter of 2023.
“Top priorities associated with the turnaround plan have been to right-size the business, improve liquidity and strengthen our balance sheet to improve our capital structure,” said Sandra Harris, Chief Financial Officer and Chief Operating Officer of Tupperware Brands. “A key component is securing a solution to refinance our Senior Notes maturing in June of 2021. We are very pleased today to announce that we have successfully executed a commitment for $275 million, which combined with our improvement in operating cash flow, allows us to retire all Senior Notes. We believe that this transaction will satisfactorily remediate the relevant conditions that led to the going concern doubt disclosure in our two most recent quarterly financial reports.”
The closing of the term loan facilities and related redemption of the Senior Notes is expected to occur in the fourth quarter of 2020, and is subject to a number of conditions to closing. There can be no assurance that the term loan facilities, and related redemption of Tupperware’s Senior Notes, will be consummated on the terms described in this press release or at all. Consummation of the term loan facilities and related redemption of Tupperware’s Senior Notes, and the actual terms of those transactions, will depend on market and other conditions.