Energizer plans $1.75 billion credit facilities, $1.1 billion notes

By Sara Rosenberg

New York, May 18 – Energizer Holdings Inc. plans on getting $1.75 billion of credit facilities and $1.1 billion of senior notes to fund its acquisition of Spectrum Brands’ Global Battery and Portable Lighting Business, according to an 8-K filed with the Securities and Exchange Commission on Friday.

The facilities consist of a $400 million revolver, a $200 million term loan A and a $1.15 billion term loan B.

The notes are split between a $350 million U.S. offering and a $750 million equivalent euro-denominated offering issued by a European subsidiary.

J.P. Morgan Securities LLC is the left lead on the credit facilities, and Barclays is the left lead on the bonds.

Along with funding the $2 billion acquisition, the new debt will be used to refinance Energizer’s existing credit facilities.

The company’s existing 5.5% senior notes due 2025 will remain outstanding.

Pro forma for the transaction, first-lien leverage will be 2.2 times and total leverage will be 4.9 times, based on last-12-months second-quarter fiscal year 2018 pro forma adjusted EBITDA of $622 million.

Closing is expected before year-end, subject to regulatory approvals and customary conditions.

Energizer is a St. Louis-based manufacturer of primary batteries and portable lighting products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.