Published on 6/21/2018 in the Prospect News High Yield Daily.
New Issue: Energizer sells $1.25 billion equivalent eight-year notes in two parts
By Paul A. Harris
Portland, Ore., June 21 – Energizer Holdings Inc. priced about $1.25 billion equivalent of eight-year senior notes (B2/BB-) in two tranches on Thursday, according to market sources.
Energizer Gamma Acquisition, Inc. priced $500 million of the notes at par to yield 6 3/8%. The yield printed at the tight end of yield talk in the 6½% area and tight to initial guidance of 6½% to 6¾%.
Energizer Gamma Acquisition BV priced €650 million of the notes at par to yield 4 5/8%. The yield printed at the tight end of yield talk in the 4¾% area and tight to initial guidance of 4¾% to 5%.
Joint bookrunner Barclays will bill and deliver. J.P. Morgan Securities LLC, BofA Merrill Lynch, Citigroup Global Markets Inc. and MUFG are also joint bookrunners.
The St. Louis-based manufacturer of batteries and portable lighting products plans to use the proceeds to support its acquisition of Spectrum Brands' global batteries and portable lighting businesses.
| Company: | Energizer Holdings Inc.
|
| Maturity: | July 15, 2026
|
| Securities: | Senior notes
|
| Bookrunners: | Barclays (bill and deliver), J.P. Morgan Securities LLC, BofA Merrill Lynch, Citigroup Global Markets Inc., MUFG
|
| Co-managers: | TD Securities, Standard Chartered
|
| Trade date: | June 21
|
| Settlement date: | July 6
|
| Ratings: | Moody's: B2
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Dollar-denominated notes
|
| Issuer: | Energizer Gamma Acquisition, Inc.
|
| Amount: | $500 million
|
| Coupon: | 6 3/8%
|
| Price: | Par
|
| Yield: | 6 3/8%
|
| Spread: | 346 bps
|
| First call: | July 15, 2021 at 103.188
|
| Equity clawback: | 40% at 106.375 until July 15, 2021
|
| Price talk: | 6½% area
|
|
|
| Euro-denominated notes
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| Issuer: | Energizer Gamma Acquisition BV
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| Amount: | €650 million
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| Coupon: | 4 5/8%
|
| Price: | Par
|
| Yield: | 4 5/8%
|
| Spread: | 445 bps
|
| First call: | July 15, 2021 at 102.313
|
| Equity clawback: | 40% at 104.625 until July 15, 2021
|
| Price talk: | 4¾% area
|
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