The J. M. Smucker Company

09/24/2021 | Press release | Distributed by Public on 09/24/2021 05:19

Underwriting Agreement (Form 8-K)

Entry into a Material Definitive Agreement

On September 21, 2021, The J. M. Smucker Company (the "Company") entered into an underwriting agreement (the "Underwriting Agreement") with BofA Securities, Inc. and J.P. Morgan Securities LLC, as representatives for the underwriters named in Schedule 1 annexed thereto (the "Underwriters"), providing for the offer and sale by the Company of $500.0 million aggregate principal amount of 2.125% Notes due 2032 (the "2032 Notes") and $300.0 million aggregate principal amount of 2.750% Notes due 2041 (the "2041 Notes" and, together with the 2032 Notes, the "Securities").

The Underwriting Agreement contains customary representations, warranties and covenants of the Company. It also provides for customary indemnification by each of the Company and the Underwriters against certain liabilities and customary contribution provisions in respect of those liabilities.

The foregoing description of the material terms of the Underwriting Agreement is qualified in its entirety by reference to the copy thereof which is filed herewith as Exhibit 1.1 and incorporated herein by reference.

Other Events

On September 21, 2021, the Company agreed to sell $500.0 million aggregate principal amount of its 2032 Notes and $300.0 million aggregate principal amount of its 2041 Notes pursuant to the Underwriting Agreement. The sale of the Securities is expected to close on September 24, 2021. The offering of the 2032 Notes was priced at 99.543% of the $500.0 million principal amount of 2032 Notes to be issued. At that price, the 2032 Notes have a yield to maturity of 2.174%. The offering of the 2041 Notes was priced at 99.970% of the $300.0 million principal amount of 2041 Notes to be issued. At that price, the 2041 Notes have a yield to maturity of 2.752%.

The expected net proceeds will be approximately $792.1 million after deducting the underwriting discount but before deducting the Company's expenses related to the offering. The Company intends to use the net proceeds from the offering of the Securities to repay, redeem or refinance $750.0 million in principal amount of its unsecured senior notes due October 15, 2021, which bear interest at 3.50%, together with accrued and unpaid interest thereon, and for general corporate purposes, which could include, but are not limited to, repayments of other outstanding debt (including the repayment of commercial paper outstanding), capital expenditures or working capital.

The offering of the Securities was registered under the Securities Act of 1933, as amended (the "Securities Act"), and is being made pursuant to the Company's Registration Statement on Form S-3(File No. 333-249173)and the Prospectus included therein (the "Registration Statement"), filed by the Company with the Securities and Exchange Commission (the "Commission") on September 30, 2020, and the Prospectus Supplement relating thereto dated September 21, 2021 and filed with the Commission on September 23, 2021 pursuant to Rule 424(b)(2) promulgated under the Securities Act.

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