By Paul A. Harris
Portland, Ore., March 3 – Energizer Holdings, Inc. priced an upsized $300 million issue of 6½% senior notes due Dec. 31, 2027 (B2/B) at par to yield 6.502% in a Thursday drive-by, according to market sources.
The issue size increased from $250 million.
The yield printed near the tight end of yield talk in the 6 5/8% area. Initial guidance was in the high 6% area.
The deal was heard to be playing to around $400 million of demand at noon ET on Thursday, according to a portfolio manager, who reported receiving an allocation that amounted to half the order size.
The new Energizer 6½% notes due December 2027 were par ¼ bid, par ¾ offered heading into the Thursday close, the manager said.
BofA Securities Inc. was at the left of a syndicate of deal managers.
The St. Louis-based battery manufacturer plans to use the proceeds to pay down its revolver.
| Issuer: | Energizer Holdings, Inc.
|
| Amount: | $300 million, increased from $250 million
|
| Issue: | Senior notes
|
| Maturity: | Dec. 31, 2027
|
| Bookrunners: | BofA Securities Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Barclays and MUFG
|
| Co-managers: | Standard Chartered Bank, TD Securities (USA) LLC and Siebert Williams Shank & Co. LLC
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6.502%
|
| Spread: | 470 bps
|
| First call: | Aug. 21, 2024 at 103.25
|
| Trade date: | March 3
|
| Settlement date: | March 8
|
| Ratings: | Moody's: B2
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6 5/8% area
|
| Marketing: | Drive-by
|
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