Terms

Series

6.375% Senior Notes due 2049

Liquidation Preference

$25.00

Coupon Rate

6.375%

Rate Type

Fixed

Annual Dividend

$1.59

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

No

Convertible

No

Callable

Yes

First Call Date

April 15, 2024

First Call Price

$100.00

Mandatory Redemption Date

April 15, 2049

Capital Stack Ranking

Junior To: Secured Indebtedness Of Brunswick Corporation (To Extent Of Collateral), All Indebtedness And Liabilities Of Brunswick Subsidiaries (Structural Subordination); Pari Passu With: Existing And Future Unsecured Unsubordinated Indebtedness Of Brunswick Corporation; Senior To: Subordinated Indebtedness Of Brunswick Corporation

Regulatory (Basel III) Call

No

Tax Classification

Ordinary

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

8,000,000

Prospectus Summary

Brunswick Corporation is offering $200 million aggregate principal amount of 6.375% Senior Notes due April 15, 2049, issued in denominations of $25.00 and listed on the NYSE — structured to trade like retail preferred stock. The notes bear a fixed coupon of 6.375% per annum, paid quarterly on January 15, April 15, July 15, and October 15, commencing April 15, 2019. Interest accrues and is included in any redemption or repurchase price, meaning unpaid interest is not forfeited. Brunswick may call the notes at par on or after April 15, 2024. The notes are direct, unsecured, and unsubordinated obligations of Brunswick Corporation, ranking equally with all existing and future unsecured senior debt of the parent. They are effectively subordinated to Brunswick's secured debt (to the extent of collateral) and structurally subordinated to all indebtedness and liabilities of Brunswick's operating subsidiaries — meaning subsidiary creditors are paid first from subsidiary assets before any funds flow up to noteholders. As of December 31, 2018, on an as-adjusted basis, Brunswick had approximately $1.26 billion in total debt, including $15.6 million secured. There is no regulatory capital call provision; these are plain senior notes of an industrial holding company. At the $25.00 issue price, the notes yield 6.375% annually, or approximately $0.398 per note per quarter. Because these are interest-bearing debt securities — not preferred equity — interest payments are taxed as ordinary income and do not qualify for the 15%/20% qualified dividend income (QDI) rate or the corporate dividends-received deduction (DRD). There are no dividend stopper mechanics; however, as unsecured senior notes, payment is subject to Brunswick's overall financial health and the structural subordination risk from its subsidiary operations.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 64 (Strong)