Winnebago Industries will redeem $100 million of its outstanding $200 million aggregate principal of 6.25% senior secured notes due 2028, paying the principal at 100 percent of face value plus accrued interest. The redemption will take place on February 20 2026, leaving $100 million of the original $300 million principal still outstanding.
The notes were issued in June 2020 at a 6.25 percent coupon and were originally priced at $300 million. By redeeming one‑third of the outstanding principal, Winnebago reduces its long‑term debt exposure while preserving the remaining notes to support future financing needs. The redemption price of 100 percent plus accrued interest reflects the company’s commitment to honoring its debt obligations fully.
This move is part of Winnebago’s broader balance‑sheet repair program, which has already lowered the company’s net leverage ratio from 4.8× at the end of FY2025 Q3 to 3.1× at the end of FY2025 and to 2.7× by the end of Q1 FY2026. The program has also driven a 0.72 debt‑to‑equity ratio as of November 30 2025, down from 0.85 a year earlier. The redemption further accelerates the debt‑reduction trajectory and supports the company’s goal of reaching a net leverage ratio near 2.0× by the end of FY2026.
CFO Bryan Hughes said the redemption “reflects our stated focus on improving balance sheet leverage while continuing to generate cash flow and maintain strong cash balances.” CEO Michael Happe added that the company is “making meaningful progress on our priorities” and that the balance‑sheet repair program is a key pillar of its strategy to strengthen financial flexibility and support future growth initiatives.
By reducing long‑term debt, Winnebago will lower its interest expense, improve its debt‑to‑EBITDA ratio, and free cash flow that can be deployed toward capital expenditures, product development, or shareholder returns. The redemption also signals management’s confidence in the company’s operating performance, as evidenced by Q1 FY2026 results that showed revenue growth, margin expansion, and a raised earnings guidance. The move positions Winnebago to capitalize on opportunities in the motorhome and RV markets while maintaining a disciplined capital structure.
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