Company: PBH
Filing Date: 2025-05-09
Form Type: 10-K
Source: 0001295947-25-000017
Chunk: 37

Company: Prestige Consumer Healthcare Inc.
Filing Date: 2025-05-09
Form: 10-K
Item: Item 1A
Chunk 37
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 from the Company’s Vice President of Information Technology, in order to evaluate any 

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potential security, compliance, or operational risks.  Nonetheless, the use of AI by our employees, suppliers and customers could expose our confidential information or those of our stakeholders, which could have a material adverse impact on our business reputation.  At this time, the Company has no immediate plans to launch proprietary AI tools. In the medium term, we may explore the use of AI-powered tools for our employees and features on our websites to assist customers with inquiries related to our products.

Risks Related to our Financing

Our current indebtedness could adversely affect our financial condition and we may incur substantially more debt in the future. 

At March 31, 2025, our total indebtedness, including current maturities, was approximately $1.0 billion.

Our indebtedness could:

•Increase our vulnerability to general adverse economic and industry conditions;

•Require us to dedicate a substantial portion of our cash flow from operations toward repayment of our indebtedness, thereby reducing the availability of our cash flow to fund working capital, capital expenditures, investments and other general corporate purposes;

•Limit our ability to fund potential acquisitions;

•Limit our flexibility in planning for, or reacting to, changes in our business and the markets in which we operate;

•Place us at a competitive disadvantage compared to our competitors that have less debt; and

•Limit, among other things, our ability to borrow additional funds on favorable terms or at all.

The terms of the indentures governing our 3.750% senior notes due April 1, 2031 (the "2021 Senior Notes") and our 5.125% senior unsecured notes due January 15, 2028 (the "2019 Senior Notes"), and the credit agreement governing our revolving credit facility, allow us to issue and incur additional debt only upon satisfaction of the conditions set forth in those respective agreements.  If new debt is added to current debt levels, the related risks described above could increase.

At March 31, 2025, we had $165.7 million of borrowing capacity available under our revolving credit facility to support our operating activities.  We currently have no balance on our revolving credit facility, but future borrowings would be subject to variability in interest rates which could potentially limit our ability to fund working capital, capital expenditures and acquisitions.  

Our capital structure and ability to engage in strategic transactions is limited in significant respects by the restrictive covenants in our revolving credit facility and the indentures