ECL · 10-Q · 2026Q3 · Full report

Interest Rate and Refinancing Exposure

ECOLAB INC. · 2026-10-29 · Importance 64 · Surprise 42 · No source text

In May 2026, Ecolab issued $5.0 billion of fixed-rate notes: $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%. Proceeds funded the CoolIT Systems acquisition and general corporate purposes, and Ecolab terminated an acquisition-related delayed-draw term loan facility without drawing on it. Net interest expense for the first nine months of 2026 was $270.6 million, versus $176.8 million in the prior-year period; the filing also reports $6.6 million of special interest charges related to debt used to fund the acquisition.

Key facts

• In May 2026, Ecolab issued $1.2 billion of three-year fixed-rate 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%. source
• Ecolab entered interest-rate swap agreements converting $1,250 million of fixed-rate debt to floating-rate debt; the fixed rates range from 1.3% to 4.8%, with maturities between 2027 and 2031. source
• Ecolab entered forward-starting interest-rate locks during the nine months ended September 30, 2026, to hedge rate risk on anticipated debt issuances; the contracts were settled when it issued $5.0 billion of public notes in May 2026. source
• Ecolab's AOCI balance related to the rate-lock contracts will be reclassified into interest expense over the term of the issued debt. source
• Ecolab uses fixed- and floating-rate debt and may enter interest-rate swaps to manage interest-rate exposure and reduce borrowing costs. source

Impact estimates