Brunswick Corporation has increased the maximum aggregate principal amount it will purchase under its cash tender offer for its 5.100% Senior Notes due 2052 from $50 million to $100 million. The offer, which expires at 5:00 p.m. Eastern Time on December 11, 2025, includes an early‑tender premium of $50 per $1,000 of principal for holders who tender before the November 25 deadline. The tender was oversubscribed, with $111.3 million of principal tendered by the early deadline, so the company will accept $100 million worth of notes and apply a proration rate of approximately 90.2%.
The expansion reflects Brunswick’s ongoing deleveraging strategy, which aims to reduce its net leverage ratio below 2.0× by the end of 2027. By repurchasing a larger portion of its long‑term debt, the company expects to lower interest expense, improve its credit profile, and free capital that can be deployed for future growth initiatives or returned to shareholders. The move is part of a broader effort to strengthen financial flexibility amid a competitive marine‑recreation market that is sensitive to interest‑rate cycles and tariff headwinds.
Brunswick’s Q3 2025 earnings, released on October 23, provided a backdrop for the tender offer. The company reported revenue of $1.36 billion, up 8.5% from the prior quarter and beating the consensus estimate of $1.26 billion. Adjusted earnings per share of $0.97 surpassed the $0.86 forecast by $0.11, a 12.8% beat, driven by disciplined cost management and a favorable mix of high‑margin product lines. Free cash flow was strong, giving Brunswick the liquidity to pursue the tender offer without compromising its operating plans. CEO David Foulkes said the company’s “commitment to debt reduction targets and returning capital to shareholders” underpins the decision, while CFO Ryan Willham highlighted the “robust cash‑flow generation” that supports the repurchase.
The tender offer itself has not triggered a distinct market reaction, as it is viewed as a routine debt‑management activity. However, the action signals confidence in the company’s financial health and its ability to execute on its capital‑allocation priorities. Analysts note that the repurchase aligns with Brunswick’s stated goal of improving leverage and that the company’s recent earnings beat provides a solid foundation for the move.
By reducing its long‑term debt load, Brunswick is expected to lower its interest‑expense burden and improve its debt‑to‑equity ratio, which could enhance its credit rating and reduce future borrowing costs. The freed capital may be used to fund strategic acquisitions, invest in technology and innovation, or support shareholder returns through dividends or share buybacks. The tender offer therefore represents a tangible step toward Brunswick’s broader objective of strengthening its balance sheet and positioning the company for sustainable growth in a cyclical industry.
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