Company: PRMB
Filing Date: 2025-02-07
Form Type: S-1/A
Source: 0001193125-25-022806
Chunk: 326

Company: Primo Brands Corp
Filing Date: 2025-02-07
Form: S-1/A
Chunk 326
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 0.25% to 0.375%, based on the Company’s average daily total utilization of the Revolver. As of September 30, 2024, the Company was compliant with all affirmative and negative covenants in all debt agreements. The Company estimates the fair values of its debt set forth below as of September 30, 2024, as follows (in millions):

|                             |     | Book Value |         |     | Fair Value |         |
|:----------------------------|:----|:-----------|--------:|:----|:-----------|--------:|
| 2021 Term Loans             |     | $          | 2,709.6 |     | $          | 2,706.2 |
| 2024 Incremental Term Loans |     | $          |   397.0 |     | $          |   396.5 |
| Senior Notes                |     | $          |   713.0 |     | $          |   710.3 |

The fair value of long-term debt is estimated using quoted market prices for similar issues. The valuation of the Company’s long-term debt is categorized within Level 2 of the fair value hierarchy, as defined in Note 13-FairValue Measurements. Given the variable interest rates, the carrying value of the Revolver and other debts approximate their fair values. NOTE 9—INCOME TAXES For the three months ended September 30, 2024, the Company recorded an income tax expense of $18.5 million, or an effective tax rate of 25.8%. The majority of the Company’s taxable income is generated in the United States and taxed at a federal and state statutory rate of 24.9%. Relative to the federal and state statutory rate, the 2024 effective tax rate for the three months ended September 30, 2024 was primarily impacted by the negative effects of permanent book to tax differences and state non-incometaxes, offset by research and development tax credits. For the three months ended September 30, 2023, the Company recorded an income tax expense of $21.4 million. The effective tax rate for the three months ended September 30, 2023 of 27.1%. Relative to the federal and state statutory rate, the 2023 effective tax rate for the three months ended September 30, 2023 was primarily impacted by the effects of discrete items. For the nine months ended September 30, 2024, the