On December 3, 2024, The J. M. Smucker Company (SJM, Financial) revealed its plan to initiate cash tender offers to purchase up to $300 million of its outstanding senior notes. This strategic financial maneuver is designed to optimize the company's debt portfolio by targeting several series of notes, including the 2.750% Senior Notes due 2041, 3.550% Senior Notes due 2050, 2.125% Senior Notes due 2032, 4.375% Senior Notes due 2045, and 5.900% Senior Notes due 2028.
The offers are set to expire at 5:00 p.m. New York City time on January 2, 2025, unless extended or terminated earlier by the company. Investors who wish to receive the total consideration, which includes an early tender premium of $30 per $1,000 principal amount of notes, must tender their notes by 5:00 p.m. on December 16, 2024. The early tender premium is part of the total consideration and does not represent an additional payment.
The J. M. Smucker Company plans to fund these purchases using cash on hand and resources from its commercial paper program. Settlement for notes tendered by the early deadline is expected to occur on December 19, 2024.
Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are acting as dealer managers for these offers, ensuring a smooth execution of the company's strategic financial objectives.
This announcement is part of The J. M. Smucker Company's ongoing efforts to manage its financial obligations effectively, reflecting a proactive approach to maintaining a robust balance sheet.
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