Company: PRMB
Filing Date: 2025-02-07
Form Type: S-1/A
Source: 0001193125-25-022806
Chunk: 165

Company: Primo Brands Corp
Filing Date: 2025-02-07
Form: S-1/A
Chunk 165
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 Operations outside of the United States are concentrated in Canada and accounted for 3.7% and 4.3% of Revenue, net for the fiscal years ended December 30, 2023 and
December 31, 2022, respectively. Primo Water translates the revenues and expenses of its foreign operations using average exchange rates prevailing during the period. The effect of a 10% change in the average foreign currency exchange rates
among the U.S. dollar versus the Canadian dollar for the fiscal year ended December 30, 2023 would result in changes to Primo Water’s Revenue, net and Gross profit of $6.6 million and $4.1 million, respectively. This change would
not be material to Primo Water’s cash flows and results of operations.

Debt Obligations and Interest Rates

Primo Water has exposure to interest rate risk from the outstanding principal amounts of its short-term borrowings on the Primo Water Revolving
Credit Facility. Interest rates on Primo Water’s long-term debt are fixed and not subject to interest rate volatility. The Primo Water Revolving Credit Facility is vulnerable to fluctuations in euro currency rates, Bank of America’s prime
rate, and the federal funds rate. Because Primo Water had no outstanding borrowings under the Primo Water Revolving Credit Facility as of December 30, 2023, the weighted-average interest rate of the Primo Water Revolving Credit Facility was
—% and a 100 basis point increase in the current per annum interest rate for the Primo Water Revolving Credit Facility (excluding the $66.7 million of outstanding letters of credit) would not result in additional interest expense.

Primo Water regularly reviews the structure of its indebtedness and considers changes to the proportion of variable versus fixed rate debt
through refinancing, interest rate swaps, or other measures in response to the changing economic environment. Historically, Primo Water has not used derivative instruments to manage interest rate risk. If Primo Water uses and fails to manage these
derivative instruments successfully, or if Primo Water is unable to refinance its indebtedness or otherwise increase its debt capacity in response to changes in the marketplace, the expense associated with debt service could increase. This would
negatively affect Primo Water’s, and therefore the Company’s, financial condition and profitability.

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The information below summarizes Primo Water’s market risks associated with debt obligations as of September 28, 2024. The table presents principal cash flows and related interest rates