Company: MWA
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001350593-25-000029
Chunk: 87

Company: Mueller Water Products, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 87
---
 million, as reduced by $11.8 million of outstanding letters of credit and $0.2 million of accrued fees and expenses.

4.0% Senior Unsecured Notes

On May 28, 2021, we privately issued $450.0 million of 4.0% Unsecured Senior Notes (“4.0% Senior Notes”), which mature on June 15, 2029, and bear interest at 4.0%, paid semi-annually in June and December.  We capitalized $5.5 million of financing costs, which are being amortized over the term of the 4.0% Senior Notes using the effective interest method.  Proceeds from the 4.0% Senior Notes, along with cash on hand, were used to redeem our previously existing notes.  Substantially all of our U.S. subsidiaries guarantee the 4.0% Senior Notes, which are subordinate to borrowings under our ABL.  Based on quoted market prices, which is a Level 1 measurement, the outstanding 4.0% Senior Notes had a fair value of $419.4 million at March 31, 2025.

An indenture governing the 4.0% Senior Notes (“Indenture”) contains customary covenants and events of default, including covenants that limit our ability to incur certain debt and liens.  There are no financial maintenance covenants associated with the Indenture.  We believe we were in compliance with these covenants at March 31, 2025.  

We may redeem some or all of the 4.0% Senior Notes at any time after June 15, 2024, at specified redemption prices.  Upon a Change of Control (as defined in the Indenture), we could be required to offer to purchase the 4.0% Senior Notes at a price equal to 101% of the outstanding principal amount if there is a Ratings Decline (as defined in the Indenture).

Our corporate credit rating and the credit rating for our debt and outlook are presented below:

 Moody’s  Standard & Poor’sMarch 31,September 30, March 31,September 30, 2025202420252024Corporate credit ratingBa1Ba1BBBBABL AgreementNot ratedNot ratedNot ratedNot rated4.0% Senior NotesBa1Ba1BBBBOutlookStableStablePositiveStable

These ratings are not a recommendation to