By Paul A. Harris
Portland, Ore., April 15 – Energizer Holdings, Inc. priced an upsized $250 million add-on to its 6 3/8% senior notes due July 15, 2026 (B2/B+) at 102.25 in a Wednesday drive-by, according to a syndicate source.
The execution renders a 5.765% yield to worst and a 5.935% yield to maturity.
Citigroup Global Markets Inc. was the lead bookrunner. Joint bookrunners were BofA Securities Inc., J.P. Morgan Securities LLC, Barclays and MUFG.
The issue size increased from $200 million.
The price came at the rich end of price talk in the 102 area.
The St. Louis-based manufacturer of batteries and portable lighting products plans to use the proceeds, including those resulting from the $50 million upsize of the issue, to repay debt under its revolving credit facility.
| Issuers: | Energizer Holdings, Inc.
|
| Amount: | $250 million, increased from $200 million
|
| Maturity: | July 15, 2026
|
| Security description: | Add-on to 6 3/8% senior notes due July 15, 2026
|
| Lead bookrunner: | Citigroup Global Markets Inc.
|
| Joint bookrunners: | BofA Securities Inc., J.P. Morgan Securities LLC, Barclays and MUFG
|
| Co-managers: | Standard Chartered Bank and TD Securities (USA) LLC
|
| Coupon: | 6 3/8%
|
| Price: | 102.25
|
| Yield to worst: | 5.765%
|
| Yield talk maturity: | 5.935%
|
| Spread: | 560 bps
|
| First call: | July 15, 2021 at 103.188
|
| Equity clawback: | 40% at 106.375 until July 15, 2021
|
| Trade date: | April 15
|
| Settlement date: | April 22 with accrued interest interest
|
| Ratings: | Moody's: B2
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 102 area
|
| Marketing: | Drive-by
|
| Original issue: | $500 million priced in June 2018
|
| Fungibility: | Rule 144A notes to immediately become fungible with original notes; Regulation S notes to become fungible with original notes following 40-day seasoning period
|
| Total issue size: | $750 million
|
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