Monitor for any future interest deferral elections, which would signal cash conservation and restrict dividends. The 8.5% coupon is high for investment-grade debt, reflecting the junior subordinated structure. Watch for rating agency actions on equity credit treatment of the notes.
Price Chart
Executive Summary
Campbell's issued $300 million of 8.500% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due 2057, a debt offering that bolsters its capital structure with long-dated, subordinated financing. The notes carry a high initial coupon (8.5%) and reset features, and include optional deferral of interest for up to 10 years, subordination to senior debt, and redemption rights tied to tax, rating agency, or change-of-control events. This is a routine capital markets transaction with no immediate impact on common equity fundamentals.
Key Facts
- Issued $300,000,000 aggregate principal amount of 8.500% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due 2057.
- Interest rate is 8.500% per year from October 5, 2026 to April 5, 2032, then resets every five years at Five-Year U.S. Treasury Rate plus 3.511%, with a floor at 8.500%.
- Interest payable semi-annually on April 5 and October 5, commencing April 5, 2027.
- Company may defer interest payments for up to 10 consecutive years at its option, subject to restrictions on dividends and other payments.
- Notes are unsecured and subordinated to all Senior Indebtedness of the Company.
- Optional redemption at 100% of par within 90 days before and on the First Reset Date (April 5, 2032), and on any Interest Payment Date thereafter.
- Redemption at 102% of par upon a Rating Agency Event, at 101% of par upon a Change of Control Triggering Event, and at 100% of par upon a Tax Event.
- If Company does not redeem upon a Change of Control Triggering Event, interest rate increases by 500 basis points (5.0 percentage points).
- Notes issued in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof.
- Indenture dated October 5, 2026, with U.S. Bank Trust Company, National Association as Trustee.
Financial Impact
$300,000,000 in new junior subordinated debt issued at 8.500% initial coupon, with a 30-year final maturity (2057). Proceeds not specified but typical for general corporate purposes.
Risk Factors
- Interest deferral could signal financial stress and restrict common dividends and share repurchases.
- Subordination to senior debt means noteholders rank behind all senior creditors in liquidation.
- Reset rate after 2032 depends on then-prevailing Treasury yields plus spread, potentially increasing interest costs.
Investment Themes
Documents Analyzed
This report is based on 3 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-414113 |
| Document: d147487dex42.htm | 0001193125-26-414113 |
| Document: d147487dex11.htm | 0001193125-26-414113 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 20, 2026 6d ago | Institutional Cluster | $19.56 | awaiting T+20 | — | $20.39 (+4.24%) |
Oct 7, 2026 20d ago | DEF 14A | $18.90 | awaiting T+20 | — | $20.39 (−7.88%) |
Oct 5, 2026 21d ago | 8-K | $19.00 | awaiting T+20 | — | $20.39 (+7.32%) |
Sep 3, 2026 7w ago | 8-K | $22.13 $19.62 | ▲ +11.32% | ▲ +10.13% | $20.39 (+7.84%) |
Jul 29, 2026 12w ago | Institutional Cluster | $22.08 $23.28 | ▲ +5.43% | ▲ +1.47% | $20.39 (−7.65%) |
Jun 17, 2026 18w ago | 8-K | $21.15 $22.65 | ▲ +7.09% | ▲ +6.56% | $20.39 (−3.59%) |
Jun 11, 2026 19w ago | Institutional Cluster | $22.73 $21.47 | ▼ −5.54% | ▼ −7.43% | $20.39 (−10.29%) |
Jun 8, 2026 20w ago | 8-K | $21.49 $22.66 | ▼ −5.44% | ▼ −3.81% | $20.39 (+5.12%) |
US Market Status
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