Church&Dwight Co. Inc.'s Proposed Senior Unsecured Notes Rated 'BBB+'

SAN FRANCISCO (S&P Global Ratings) Oct. 31, 2022--S&P Global Ratings today assigned its 'BBB+' issue-level rating to Ewing, N.J.-based Church&Dwight Co. Inc.'s proposed $500 million senior unsecured notes (maturity to be determined). We expect the company will use the net proceeds to repay commercial paper issued to fund the Hero acquisition for approximately $630 million. Therefore, we anticipate it will be a leverage-neutral transaction. All of our ratings on the company, including our 'BBB+' issuer credit rating, are unchanged. During the third quarter ended Sept. 30, 2022, Church&Dwight increased revenue 0.4% relative to the same period in 2022, including 1% drag from currency. Notably, organic volumes declined about 8.5%, partially offset by positive pricing of 7.8%.

...October 31, 2022 SAN FRANCISCO (S&P Global Ratings) Oct. 31, 2022--S&P Global Ratings today assigned its '###+' issue-level rating to Ewing, N.J.-based Church & Dwight Co. Inc.'s proposed $500 million senior unsecured notes (maturity to be determined). We expect the company will use the net proceeds to repay commercial paper issued to fund the Hero acquisition for approximately $630 million. Therefore, we anticipate it will be a leverage-neutral transaction. All of our ratings on the company, including our '###+' issuer credit rating, are unchanged. During the third quarter ended Sept. 30, 2022, Church & Dwight increased revenue 0.4% relative to the same period in 2022, including 1% drag from currency. Notably, organic volumes declined about 8.5%, partially offset by positive pricing of 7.8%. In addition, gross margin declined 250 basis points (bps) due to higher commodity and third-party manufacturing costs and promotional spending. Pro forma for the acquisition we estimate leverage in...

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