Newell Brands has signed a bulk purchase annuity deal with an unnamed US insurer which will see the firm transfer up to $175m of pension scheme liabilities off its balance sheet.
The deal by Atlanta-based home goods manufacturer was revealed in a October 27 10-Q filing with the Securities and Exchange Commission (SEC), and is the second such transaction it has conducted.
The latest deal will see Newell Brands transfer between $160m and $175m of pension liabilities to the insurer, accounting for 55% of its total pension scheme liabilities, according to the firm’s regulatory filing.
Newell previously bought a group annuity contract from Massachusetts Mutual Life Insurance Company three years ago, for a similar value, which according to media reports represented 45% of its total pension scheme liabilities.
According to Newell’s latest 10-K filing, the firm’s expected pension obligations were valued at $936m.
There have been several US pension risk transfer deals announced in October. Owens Corning revealed a $300M deal in its SEC filings on October 27, while a week earlier news broke that ATI had offloaded the majority of its 1.8bn worth of pension liabilities to an unnamed insurer.
