Moody’s rates Energizer bonds B2

Moody's Investors Service said it assigned a B2 rating to Energizer Holdings, Inc.'s $750 million equivalent offering of unsecured euro bonds due 2026 and $500 million offering of unsecured dollar-denominated bonds due 2026.

The euro bonds will be issued by Energizer Gamma Acquisition BV, a wholly owned subsidiary of Energizer. They will benefit from a guaranty from the parent company, Energizer Holdings, but will be ahead of the debt at Energizer.

The dollar-denominated bonds will be issued by Energizer Holdings.

Moody's said it expects bond proceeds and proceeds from the company's proposed new first-lien secured credit facilities to be used to acquire the Spectrum battery company, refinance existing debt and pay estimated fees and expenses.

The outlook is stable.

The B2 rating on the unsecured notes is one notch lower than Energizer's B1 corporate family rating. The agency said this reflects its expectation of a meaningful amount of proposed secured debt that will rank ahead of the unsecured notes in the capital structure within the near-term.

The notes benefit from upstream guarantees from Energizer's domestic subsidiaries, Moody’s added.

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