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Icahn Enterprises L.P. Announces Pricing of Senior Notes

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Icahn Enterprises (NASDAQ: IEP) has announced the pricing of an additional $500 million of 10.000% Senior Secured Notes due 2029 through a private placement. The notes will be issued under the existing indenture from November 20, 2024, and will be guaranteed by Icahn Enterprises Holdings L.P.

The notes will be secured by substantially all assets directly owned by the issuers and guarantor. The proceeds, combined with cash on hand, will be used to partially redeem IEP's existing 6.250% Senior Notes due 2026. The offering is limited to qualified institutional buyers in the U.S. under Rule 144A and non-U.S. persons under Regulation S.

Icahn Enterprises (NASDAQ: IEP) ha annunciato il prezzo di un'ulteriore emissione di 500 milioni di dollari di Senior Secured Notes al 10,000% con scadenza nel 2029, tramite un collocamento privato. Le obbligazioni saranno emesse sotto l'attuale indenture a partire dal 20 novembre 2024 e saranno garantite da Icahn Enterprises Holdings L.P.

Le obbligazioni saranno garantite da quasi tutti gli asset direttamente posseduti dagli emittenti e dal garante. I proventi, insieme alla liquidità disponibile, saranno utilizzati per il rimborso parziale delle attuali Senior Notes al 6,250% con scadenza 2026 di IEP. L'offerta è riservata a investitori istituzionali qualificati negli Stati Uniti ai sensi della Rule 144A e a soggetti non statunitensi ai sensi del Regulation S.

Icahn Enterprises (NASDAQ: IEP) ha anunciado el precio de una emisión adicional de 500 millones de dólares en Notas Senior Garantizadas al 10.000% con vencimiento en 2029, mediante una colocación privada. Las notas se emitirán bajo el indenture existente a partir del 20 de noviembre de 2024 y estarán garantizadas por Icahn Enterprises Holdings L.P.

Las notas estarán aseguradas por prácticamente todos los activos propiedad directa de los emisores y el garante. Los ingresos, junto con el efectivo disponible, se usarán para redimir parcialmente las actuales Notas Senior al 6,250% con vencimiento en 2026 de IEP. La oferta está limitada a compradores institucionales cualificados en EE.UU. bajo la Regla 144A y a personas no estadounidenses bajo el Reglamento S.

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Icahn Enterprises (NASDAQ: IEP) a annoncé le prix d'une émission supplémentaire de 500 millions de dollars de Senior Secured Notes à 10,000% échéant en 2029, via un placement privé. Les obligations seront émises sous l'acte d'émission existant à partir du 20 novembre 2024 et seront garanties par Icahn Enterprises Holdings L.P.

Les obligations seront garanties par pratiquement tous les actifs détenus directement par les émetteurs et le garant. Les fonds levés, combinés à la trésorerie disponible, serviront à rembourser partiellement les Senior Notes à 6,250% échéant en 2026 existantes d'IEP. L'offre est limitée aux acheteurs institutionnels qualifiés aux États-Unis selon la règle 144A et aux personnes hors des États-Unis selon le règlement S.

Icahn Enterprises (NASDAQ: IEP) hat die Preisfestsetzung für eine zusätzliche Emission von 500 Millionen US-Dollar 10,000% Senior Secured Notes mit Fälligkeit 2029 im Rahmen einer Privatplatzierung bekannt gegeben. Die Anleihen werden unter der bestehenden Indenture ab dem 20. November 2024 ausgegeben und von Icahn Enterprises Holdings L.P. garantiert.

Die Anleihen werden durch nahezu alle direkt vom Emittenten und Garanten gehaltenen Vermögenswerte besichert. Die Erlöse werden zusammen mit vorhandenen Barmitteln zur teilweisen Rückzahlung der bestehenden 6,250% Senior Notes mit Fälligkeit 2026 von IEP verwendet. Das Angebot richtet sich ausschließlich an qualifizierte institutionelle Käufer in den USA gemäß Regel 144A und an Nicht-US-Personen gemäß Regulation S.

Positive
  • New notes are secured by substantially all assets of the issuers and guarantor
  • Refinancing of existing debt with longer maturity (2029 vs 2026)
  • Successfully raising additional $500 million in capital
Negative
  • Higher interest rate on new notes (10.000%) compared to existing notes (6.250%)
  • Increased debt burden with additional $500 million notes
  • Limited to private placement, indicating potential challenges in public markets

Insights

Icahn Enterprises is refinancing debt with higher-interest secured notes, suggesting potential liquidity management amid challenging financial conditions.

Icahn Enterprises (IEP) has announced plans to issue $500 million in additional 10.000% Senior Secured Notes due 2029, effectively doubling the size of this note series after their initial $500 million issuance in November 2024. The proceeds will be used to partially redeem their existing 6.250% Senior Notes due 2026.

The financial implications here are significant. IEP is choosing to refinance debt at a substantially higher interest rate - 10% versus 6.25% - representing a 3.75% premium. This substantial rate increase will cost the company approximately $18.75 million in additional annual interest expense on this $500 million portion alone.

The notes being secured by "substantially all assets" directly owned by the issuers suggests IEP may be facing constraints in the unsecured debt market. Companies typically resort to secured financing when unsecured options become challenging or prohibitively expensive.

This refinancing appears to be a proactive liquidity management strategy, extending debt maturities from 2026 to 2029. However, the significantly higher interest rate indicates the market is demanding greater compensation for perceived risk. The private placement structure (versus public offering) and the secured nature of these notes both point to potential market concerns about IEP's financial position.

While this transaction provides IEP with extended maturity runway, the substantially higher borrowing costs will impact cash flow and could signal deeper financial challenges facing the company.

SUNNY ISLES BEACH, Fla., Aug. 5, 2025 /PRNewswire/ -- Icahn Enterprises L.P. (NASDAQ: IEP) � Icahn Enterprises L.P. ("Icahn Enterprises") announced today that it, together with Icahn Enterprises Finance Corp. (together with Icahn Enterprises, the "Issuers"), intends to commence an offering of additional $500,000,000 aggregate principal amount of 10.000% Senior Secured Notes due 2029 (the "Notes") for issuance in a private placement not registered under the Securities Act of 1933, as amended (the "Securities Act"). The Notes will be issued under the indenture dated November 20, 2024, by and among the Issuers, Icahn Enterprises Holdings L.P., as guarantor (the "Guarantor"), and Wilmington Trust, National Association, as trustee and collateral agent in connection with the closing of the existing $500,000,000 aggregate principal amount of 10.000% Senior Secured Notes due 2029 announced by Icahn Enterprises on November 20, 2024, and will be guaranteed by the Guarantor. The Notes will be secured by substantially all of the assets directly owned by the Issuers and the Guarantor, subject to customary exceptions. The net proceeds from the offering will be used, together with cash on hand, to partially redeem the Issuers' existing 6.250% Senior Notes due 2026 (the "2026 Notes"). There can be no assurance that the issuance and sale of any debt securities of the Issuers will be consummated.

The Notes and related guarantees are being offered only (1) in the United States to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act and (2) outside the United States to persons other than "U.S. persons" in compliance with Regulation S under the Securities Act. The Notes and related guarantees have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act. This press release shall not constitute an offer to sell or a solicitation of an offer to buy any securities of the Issuers.

About Icahn Enterprises L.P.

Icahn Enterprises L.P. (NASDAQ: IEP), a master limited partnership, is a diversified holding company owning subsidiaries currently engaged in the following continuing operating businesses: Investment, Energy, Automotive, Food Packaging, AGÕæÈ˹ٷ½ Estate, Home Fashion and Pharma.

Caution Concerning Forward-Looking Statements

This release contains certain statements that are, or may deemed to be, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, many of which are beyond our ability to control or predict. Forward-looking statements may be identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will" or words of similar meaning and include, but are not limited to, statements about the expected future business and financial performance of Icahn Enterprises and its subsidiaries. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors, including risks related to economic downturns, substantial competition and rising operating costs; the impacts from the Russia/Ukraine conflict and ongoing conflict in the Middle East, including economic volatility and the impacts of export controls and other economic sanctions; risks related to our investment activities, including the nature of the investments made by the private funds in which we invest, including the impact of the use of leverage through options, short sales, swaps, forwards and other derivative instruments; risk related to our ability to comply with the covenants in our senior notes and the risk of foreclosure on the assets securing our notes; declines in the fair value of our investments, losses in the private funds and loss of key employees; risks related to our ability to continue to conduct our activities in a manner so as to not be deemed an investment company under the Investment Company Act of 1940, as amended, or be taxed as a corporation; risks relating to short sellers and associated litigation and regulatory inquiries; risks related to our general partner and controlling unitholder; pledges of our units by our controlling unitholder; risks related to our energy business, including the volatility and availability of crude oil, other feed stocks and refined products, declines in global demand for crude oil, refined products and liquid transportation fuels, unfavorable refining margin (crack spread), interrupted access to pipelines, significant fluctuations in nitrogen fertilizer demand in the agricultural industry and seasonality of results; volatile commodity pricing and higher industry utilization and oversupply risks relating to potential strategic transactions involving our Energy segment, and the impact of tariffs; risks related to our automotive activities and exposure to adverse conditions in the automotive industry, including as a result of the Chapter 11 filing of our automotive parts subsidiary; risks related to our food packaging activities, including competition from better capitalized competitors, inability of our suppliers to timely deliver raw materials, and the failure to effectively respond to industry changes in casings technology; supply chain issues; inflation, including increased costs of raw materials and shipping; interest rate increases; labor shortages and workforce availability; risks related to our real estate activities, including the extent of any tenant bankruptcies and insolvencies; and risks related to our home fashion operations, including changes in the availability and price of raw materials, manufacturing disruptions, and changes in transportation costs and delivery times; and political and regulatory uncertainty, including changing economic policy and the imposition of tariffs;  and other risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission including our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q under the caption "Risk Factors." Additionally, there may be other factors not presently known to us or which we currently consider to be immaterial that may cause our actual results to differ materially from the forward-looking statements. Past performance in our Investment segment is not indicative of future performance. We undertake no obligation to publicly update or review any forward-looking information, whether as a result of new information, future developments or otherwise.

Investor Contact:
Ted Papapostolou, Chief Financial Officer
[email protected]
(800) 255-2737

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SOURCE Icahn Enterprises L.P.

FAQ

What is the size and interest rate of IEP's new Senior Notes offering?

Icahn Enterprises is offering $500 million in Senior Secured Notes with a 10.000% interest rate, due 2029.

How will IEP use the proceeds from the 2029 Senior Notes?

The proceeds will be used, along with cash on hand, to partially redeem the existing 6.250% Senior Notes due 2026.

What security is backing IEP's 2029 Senior Notes?

The notes will be secured by substantially all assets directly owned by the issuers and the guarantor, subject to customary exceptions.

Who can purchase IEP's new Senior Notes offering?

The notes are only offered to qualified institutional buyers in the U.S. under Rule 144A and non-U.S. persons under Regulation S.

What is the difference in interest rates between IEP's new and existing notes?

The new 2029 notes carry a 10.000% interest rate, compared to the existing 2026 notes' 6.250% rate, representing a significant increase in borrowing costs.
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SUNNY ISLES BEACH