Company: PRMB
Filing Date: 2025-02-07
Form Type: S-1/A
Source: 0001193125-25-022806
Chunk: 127

Company: Primo Brands Corp
Filing Date: 2025-02-07
Form: S-1/A
Chunk 127
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 discounted. The balances of BlueTriton’s self-insurance reserves were $41.8 million and $31.3 million for the years ended December 31, 2023 and 2022,
respectively. Since recorded amounts are based on estimates, the ultimate cost of all incurred claims and related expenses may be more or less than the recorded liabilities.

Quantitative and Qualitative Disclosures about Market Risk

Overview

BlueTriton’s
business and financial results are affected by fluctuations in world financial markets, including interest rates, credit risk, and overall inflation risks. BlueTriton may utilize fixed price or volume contracts that may extend over one year and
derivative financial instruments (including interest rate swap arrangements), among other methods, to hedge some of these exposures. BlueTriton does not use derivative financial instruments for speculative or trading purposes.

Interest Rate Risk

BlueTriton is
subject to interest rate market risk in connection with its floating rate long-term debt. BlueTriton’s principal interest rate exposure relates to outstanding amounts under the BlueTriton Senior Secured Credit Facilities, which bear interest at
a variable rate. If there is a rise in interest rates, our debt service obligations on the borrowings under the BlueTriton Senior Secured Credit Facilities would increase even though the amount borrowed remained the same, which would affect our
results of operations, financial condition, and liquidity.

Credit Risk

Credit risk arises from the potential that a customer or counterparty will fail to perform its obligations. BlueTriton is exposed to credit
risk on accounts receivable balances. BlueTriton believes that its concentration of

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credit risk related to trade accounts receivable is limited since these receivables are spread among a number of customers and are geographically dispersed. As of, and for the year ended,
December 31, 2023, there was one customer within the Retail segment who made up approximately 30% of trade receivables, net and 25% of net sales. No other individual customer makes up more than 10% of trade receivables, net, or net sales. If
any of BlueTriton’s significant customers should discontinue their partnership with BlueTriton, it could have a material adverse effect on the company’s business, financial condition, results of operations, and cash flows.

BlueTriton maintains provisions for potential credit losses and such losses to date have normally been within BlueTriton’s expectations.
BlueTriton