ECL · 10-Q · 2026Q2 · Full report

Interest Rate and Refinancing Exposure

ECOLAB INC. · 2026-08-06 · Importance 96 · Surprise 100 · In source text

In May 2026, Ecolab issued $5.0 billion of fixed-rate senior notes to fund the CoolIT Systems acquisition and for general corporate purposes. The notes comprised $1.2 billion of three-year notes at a 4.60% coupon, $0.9 billion of five-year notes at 4.80%, $1.5 billion of seven-year notes at 5.15%, and $1.4 billion of ten-year notes at 5.35%. Total debt increased to $13,170.8 million at June 30, 2026, from $8,125.3 million at December 31, 2025, while net interest expense rose to $145.8 million from $121.5 million for the six-month period. Ecolab also had $1.5 billion of debt converted from fixed to floating rates through interest-rate swaps maturing between 2026 and 2031.

Key facts

• In July 2026 the company entered into cross-currency swap derivative contracts with aggregate notional amounts of CNH 3,385 million, €150 million and CAD 120 million designated as net investment hedges. source
• Company entered into forward-starting interest rate lock contracts during six months ended June 30, 2026 for a total notional amount of $5.0 billion which were settled upon issuance of the $5.0 billion of public notes in May 2026 source
• Company entered into interest rate swap agreements to convert $1.5 billion of its debt from fixed to floating; fixed rates range from 1.3% to 4.8% and mature between 2026 and 2031 source
• Company issued $5.0 billion aggregate public notes in May 2026 to fund CoolIT acquisition and general corporate purposes comprised of: $1.2 billion three-year notes coupon 4.60% effective 4.61%; $0.9 billion five-year notes coupon 4.80% effective 4.84%; $1.5 billion seven-year notes coupon 5.15% effective 5.17%; $1.4 billion ten-year notes coupon 5.35% effective 5.39% source
• Reported net interest expense was $145.8 million in the first six months of 2026 and $121.5 million in the first six months of 2025. source
• Notional values of derivatives at June 30, 2026: foreign currency forward contracts $2,612 million, interest rate swap agreements $1,500 million, cross-currency swap derivative contracts $4,934 million source
• Reported net interest expense was $73.1 million in Q2 2026 and $63.2 million in Q2 2025. source
• Interest expense for six months ended June 30, 2026: $172.3 million; interest income for six months ended June 30, 2026: $26.5 million; interest expense, net for six months ended June 30, 2026: $145.8 million source

Impact estimates