Reckitt Sets Terms for $500 Million Debt Buyback and Consent Solicitation

The offer, which covers $500 million in outstanding notes, requires bondholders to provide consent to proposed amendments to the indenture governing the securities. If successful, these changes will eliminate most restrictive covenants and events of default, effectively removing Reckitt’s liability as a guarantor for the notes. The company confirmed that the total consideration was determined based on a fixed spread of 30 basis points over the yield of the 5.000% U.S. Treasury security due May 2046.

Holders choosing to participate must tender their notes and deliver their consents simultaneously, as the two actions are linked. While the tender offer is not conditioned on a minimum participation threshold, the proposed amendments to the indenture require approval from a majority of the outstanding principal. Should the offer proceed, notes that remain untendered will stay outstanding under the amended terms, though Reckitt will no longer provide its guarantee. The settlement is expected to occur on August 18, 2026, with Deutsche Bank Securities and Merrill Lynch International serving as the dealer managers.