Winnebago Industries Pays Off 2025 Convertible Notes, Reduces Debt by $159M

Winnebago Industries, a leading manufacturer of outdoor recreation products, announced on April 2, the completion of the cash settlement for its remaining $59.3 million in 1.50% unsecured convertible senior notes, which were due April 1. 

According to a press release, this action brings the company’s total debt reduction for the fiscal year to $159 million.

In a related financial move, Winnebago also finalized agreements to unwind the warrant transactions associated with the settled notes. 

Bryan Hughes, Winnebago’s Chief Financial Officer, said, “Our fiscal 2025 debt reduction reflects our disciplined approach to capital allocation, prioritizing long-term growth ambitions while maintaining a strong balance sheet and healthy liquidity.”

He continued by stating, “This strategy positions Winnebago Industries to seize growth opportunities, manage cyclicality, and reward shareholders through dividends and share repurchase programs.” 

“The recently completed cash tender offer for $100.0 million aggregate principal amount of our 6.25% Senior Secured Notes due 2028, along with the settlement of the 2025 Convertible Notes, underscores our focus on executing capital priorities with rigor to enhance long-term financial stability and flexibility,” Bryan added. 

Winnebago Industries produces a wide range of outdoor recreation products under brands like Winnebago, Grand Design, Chris-Craft, Newmar, and Barletta. 

Their products include motorhomes, travel trailers, boats, and community outreach vehicles, manufactured in facilities across several states.

The financial stability demonstrated by Winnebago Industries is significant for the outdoor recreation sector. It ensures the company’s ability to invest in innovation and maintain consistent production, benefiting consumers who rely on their products.

Furthermore, this financial health supports potential investments in sustainable practices, which are increasingly important in the outdoor recreation market.