Company: PRMB
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001193125-25-012325
Chunk: 158

Company: Primo Brands Corp
Filing Date: 2025-01-24
Form: S-1
Chunk 158
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4, in connection
with the Transaction.

Primo Water’s board of directors declared a quarterly dividend of $0.08 and $0.07 per common share in each
quarter during 2023 and 2022, respectively, for an aggregate dividend payment of approximately $51.8 million and $45.7 million, respectively.

Quantitative and Qualitative Disclosures about Market Risk

In the ordinary course of business, Primo Water is exposed to foreign currency, interest rate, commodity price, and credit risks. Primo Water
hedges firm commitments or anticipated transactions and does not enter into derivatives for speculative purposes. Primo Water does not hold financial instruments for trading purposes.

Currency Exchange Rate Risk

Primo
Water is exposed to changes in foreign currency exchange rates. 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