Icahn Enterprises (NASDAQ:IEP) Announces Closure of $500 Million Senior Secured Notes Offering

Icahn Enterprises L.P. (Icahn Enterprises) recently completed the sale of $500,000,000 in aggregate principal amount of new 10.000% Senior Secured Notes due 2029 (the Notes) on November 20, 2024. The transaction, initially disclosed on November 13, 2024, was finalized through a purchase agreement involving Icahn Enterprises Finance Corp., Icahn Enterprises Holdings L.P. as guarantor, and Jefferies LLC as initial purchaser. Priced at 100.000% of their face amount, the Notes generated net proceeds of around $495 million after accounting for the Initial Purchaser’s discounts and commissions as well as estimated fees and expenses linked to the offering. These funds are earmarked for the partial redemption of the Issuers’ existing 6.250% Senior Notes due 2026 on December 16, 2024. The Notes will be backed by the majority of assets directly owned by the Issuers and the Guarantor, subject to customary exemptions.

Interest on the Notes will be payable semi-annually on each November 15 and May 15, starting May 15, 2025. The encompassing Purchase Agreement incorporates standard representations, warranties, and covenants among the parties, along with indemnification and contribution provisions ensuring mutual protection against specific liabilities.

The Notes were issued under an indenture dated November 20, 2024, comprising the Issuers, the Guarantor as guarantor, and Wilmington Trust, National Association, acting as the Trustee and notes collateral agent. The Indenture delineates customary events of default and covenants relating to various stipulations such as the incurrence of debt, affiliate transactions, liens, and restricted payments. Redemption options are available to the Issuers post May 15, 2029, including the ability to redeem all or part of the Notes at a redemption price equivalent to 100.000% of the principal amount plus accrued and unpaid interest. Prior to this date, a make-whole premium applies in case of early redemption. In the event of a change of control, the Issuers are obligated to tender a cash offer to purchase all or part of the holders’ Notes at a predetermined purchase price entailing accrued and unpaid interest.

The associated Indenture has been included as Exhibit 4.1 to this Form 8-K, providing comprehensive details. This latest maneuver by Icahn Enterprises underscores its strategic financial positioning and proactive debt management measures, shaping the future trajectory of the organization and its substantial assets.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Icahn Enterprises’s 8K filing here.

About Icahn Enterprises

Icahn Enterprises L.P., through its subsidiaries, engages in the investment, energy, automotive, food packaging, real estate, home fashion, and pharma businesses in the United States and Internationally. The Investment segment invests its proprietary capital through various private investment funds. This segment provides investment advisory and other related services.