SOLV · 10-Q · 2026Q2 · Full report

Interest Rate and Refinancing Exposure

Solventum Corp · 2026-08-05 · Importance 56 · Surprise 24 · In source text

Solventum had $5.0 billion of senior notes outstanding at June 30, 2026, with maturities ranging from 2027 through 2064 and fixed interest rates from 5.31% to 6.09%. The Company also had a $1.0 billion three-year senior unsecured term loan with a floating interest rate based on the Secured Overnight Financing Rate (SOFR), exposing interest expense to changes in benchmark rates. Solventum entered into additional fixed-to-floating interest-rate swaps in January and February 2026, with maturities in March 2031 and March 2033, to hedge its fixed-rate senior notes.

Key facts

• Aggregate principal amount of Senior Notes outstanding: $5.0 billion with maturities ranging from 2027 through 2064. source
• In March 2026, the Company commenced a finance lease through April 2046 for its principal office in Eagan, Minnesota; discount rate used to calculate present value of lease payments was 6.47%. source
• Estimated fair value of long-term debt obligations as of June 30, 2026: $4.7 billion compared to carrying value $4.6 billion. source
• As of June 30, 2026, the total notional amount of interest rate swaps designated as fair value hedges was $__ million (amount redacted); the Company entered into a $__ million notional fixed-to-floating interest rate swap in January 2026 (maturing March 2031) and a $__ million notional fixed-to-floating interest rate swap in February 2026 (maturing March 2033) (amounts redacted). source

Impact estimates