Company: PRMB
Filing Date: 2025-02-07
Form Type: S-1/A
Source: 0001193125-25-022806
Chunk: 83

Company: Primo Brands Corp
Filing Date: 2025-02-07
Form: S-1/A
Chunk 83
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 included in Class A common stock (par value) and the remaining amount of $3,881.6 million is included in additional paid-incapital.

| (2) | In accordance with the terms of a court-approved plan of arrangement in connection with the Arrangement,                                                                                                                                                
 share-based payment awards held by associates of Primo Water were exchanged into Primo Brands awards, and are deemed to be replacement awards issued. Each stock option and time-based RSU, including Robbert Rietbroek’s inducement award of           
 232,558 time-based RSUs granted on January 2, 2024, received substantially the same terms and conditions as immediately prior to the Transaction including the stock option exercise price and number of options and units. Each Primo PSU was          
 automatically assumed and converted into a Primo Brands Conversion RSU on substantially the same terms and conditions as immediately prior to the Transaction, except that the number of Class A common stock subject to the Primo Brands Conversion    
 RSU was equal to the number of Primo Shares underlying such performance-based RSU, as determined by the Board prior to the Transaction based on the expected performance of Primo Water for the performance period, and the Primo Brands Conversion RSU 
 will have a time-based vesting period equal to the remaining performance period of such performance-based RSU. The performance-based RSUs above assume a payout at target of 1.83x resulting in the issuance of 2,494,926 shares of Class A common      
 stock.                                                                                                                                                                                                                                                  |

The estimated value of the replacement awards at the pro forma balance sheet date is $93.10 million. The consideration for the business combination includes $13.5 million for stock options, $39.6 million for performance-based RSUs, and $13.2 million for time-based RSUs transferred to associates of Primo Water when the acquiree’s awards were substituted by the replacement awards, which relates to past service, for an aggregate amount of $66.3 million included in additional paid-incapital. The balance of $26.8 million is attributed to post-acquisition compensation cost. 50

The estimated fair value was estimated using a Black-Scholes option pricing model for the 1,194,877 stock options, considering the terms and conditions upon which the stock options were granted, using the following assumptions:

|                                        |     | Stock options |       |   |
| Expected dividend yield                |     |               |   1.4 | % |
| Weighted