Company: PRMB
Filing Date: 2025-02-07
Form Type: S-1/A
Source: 0001193125-25-022806
Chunk: 84

Company: Primo Brands Corp
Filing Date: 2025-02-07
Form: S-1/A
Chunk 84
---
 average expected volatility   |     |               |  27.6 | % |
| Weighted average risk-free rate        |     |               |  4.14 | % |
| Weighted average expected life (years) |     |               |  3.90 |   |
| Share price                            |     | $             | 24.21 |   |
| Weighted average exercise price        |     | $             | 14.30 |   |
| Weighted average fair value            |     | $             | 11.31 |   |

The expected volatility of these stock options was determined using historical volatility rates of Primo Water, the dividend yield was determined using Primo Water’s expected dividends and the expected life was determined using the weighted average life of Primo Water’s past options issued. Primo Water assumptions and history are used as a proxy for Primo Brands for purposes of the pro forma adjustment. The risk-free rate is based on the U.S. Treasury yield in effect with a term equal to expected term used in the Black-Scholes model. The estimated fair value of the 793,040 time-based RSUs and 1,365,976 performance-based RSUs converted into 2,494,926 time-based RSUs was based on the quoted market price of Primo Shares as of November 8, 2024.

| (3) | The identifiable intangible assets consist of indefinite life trade names and customer relationships, which are    
 assumed to be amortized over 15 years for the purpose of these pro forma condensed combined financial information. |

| (4) | Deferred taxes associated with the incremental differences in book and tax basis created from the preliminary 
 purchase price allocation were calculated using an estimated tax rate of 25.9%.                               |

The historical balances of Primo Shares, additional paid-incapital and accumulated other comprehensive loss of $1,311.1 million, $91.2 million and ($113.9) million, respectively, were derecognized, as well as its retained earnings, comprising the historical retained earnings of $194.5 million, and the impact to retained earnings of pro forma adjustments related to the $26.1 million returnable bottles and recognition of $131.5 million one-timespecial dividend (see adjustments 3(c) and 3(h), respectively). The final determination of the purchase price allocation of the business acquisition will be based on Primo Water’s net assets acquired as of the acquisition date. The purchase price allocation may