Sept 20 (Reuters) - When U.S. consumer products company Newell Brands Inc (NWL.O) refinanced $1.1 billion worth of bonds earlier this month, it saw its borrowing costs jump by more than half.

The maker of Sharpie pens and Rubbermaid storage containers agreed to pay annual interest of between 6.4% and 6.6%, up from the 3.9% annual coupon it was paying, in exchange for pushing back the bonds' maturity by four and six years.

Newell Brands had seven months left until it had to pay back the principal on these bonds and could have held out in the hopes of a cheaper debt deal. But with the Federal Reserve rushing to raise interest rates to combat rampant inflation, it made sense for the Atlanta, Georgia-based company to refinance now, credit ratings agency Moody's Investors Service Inc said in a note. Newell Brands is rated Ba1 by Moody's