Prestige Consumer Healthcare Inc. 8-K

What Happened
Prestige Consumer Healthcare Inc. announced it closed the acquisition of the Breathe Right business on June 12, 2026 for $1.045 billion in cash and simultaneously entered into a Term Loan Credit Agreement to fund the transaction. The company and its subsidiary Prestige Brands, Inc. borrowed $1.045 billion under the new term loan; additional borrowing capacity includes an uncommitted second draw up to $95.0 million to help finance the previously announced LaCorium Health acquisition (expected in fiscal 2027). The company also amended its asset-based revolving credit (ABL) facility, increasing commitments to $225 million and extending the maturity by five years.

Key Details

• Acquisition: Breathe Right Business purchased from Foundation Consumer Brands for $1.045 billion in cash; closing date June 12, 2026.
• Term loan: $1.045 billion funded at closing; optional second draw up to $95.0 million (uncommitted) for the LaCorium Acquisition; interest at Borrower’s option of Term SOFR + 2.00% or alternate base rate (floors apply).
• ABL amendment: Revolver commitments increased to $225 million and maturity extended five years from closing; ABL borrowings may be used for LaCorium subject to minimum excess availability requirements.
• Repayment & covenants: Quarterly amortization of 0.25% of principal, customary affirmative/negative covenants, secured by substantially all assets and guaranteed by the company and certain subsidiaries; potential excess cash-flow sweep beginning fiscal 2028 if first-lien net leverage >2.75x.

Why It Matters
This filing shows Prestige funded a major brand acquisition with secured term debt and an expanded revolver rather than with equity, increasing the company’s leverage profile and adding near-term interest and amortization obligations. Investors should note the company will file the required acquired-business financial statements and pro forma financials within 71 days, which will provide more detail on how the Breathe Right purchase affects revenue, margins and leverage going forward.