Prestige Brands: Still Breathing Right after big M&A; maintain Marketweight

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Prestige Brands: Still Breathing Right after big M&A; maintain Marketweight

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Prestige Brands

Still Breathing Right after big M&A;

maintain Marketweight

Credit Analysis

Challenges are transitory 19 May 2026

We maintain our Marketweight on PBH Sr Notes as we believe the company’s challenges High Yield Credit

have been largely operational, and financial results will stabilize once production through United States

Pillar5 improves. In addition, the company’s products treat acute conditions with Consumer Products

relatively inelastic demand as consumers want relief from discomfort and are unwilling

to accept private label alternatives. However, the 5.125s and 3.75s both trade modestly

William M. Reuter

inside of the BB Index and we see limited upside potential, supporting our Marketweight. Research Analyst

BofAS

View unaltered by acquisitions +1william.m.reuter@bofa.com646 855 6363

Prestige has announced two acquisitions that will increase net leverage from 2.6x to Michael DeRienzo

4.6x. In March 2026, Prestige announced an agreement to acquire Breathe Right and ResearchBofAS Analyst

other brands from Foundation Consumer Healthcare for $1.045 billion in cash. Breathe +1 646 855 7973

michael.derienzo@bofa.com

Right produces nasal strips to improve breathing. The purchase price is 11x LTM EBITDA

or 9.5x including $150 million of tax benefits. In May 2026, Prestige announced it

entered into an agreement to acquire LeCorium Health for $150 million in cash, or 12.5x Prestige Brands (PBH)

Key Data 4Q2025A 4Q2026A LTMLTM EBITDA. The company plans to fund these acquisitions with a $1.14 billion Term

Loan-B. The company is maintaining its net leverage target of 3.0x and we expect the Operating (US$ mm)

company moves towards this target over the next few years.