Energizer gets $1.1 billion debt commitment for Spectrum Auto Care buy

By Sara Rosenberg

New York, Nov. 15 – Energizer Holdings Inc. has received a commitment for a $500 million senior secured incremental first-lien term loan and an up to $600 million senior unsecured one-year bridge loan to help fund the acquisition of Spectrum Brands’ Global Auto Care business, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

J.P. Morgan Securities LLC, Barclays and Citigroup Global Markets Inc. are the joint lead arrangers and bookrunners on the incremental term loan and bridge loan, with JPMorgan listed on the left for the incremental loan and Citigroup listed on the left for the bridge loan.

Pricing on the bridge loan is expected at Libor plus 400 basis points with a 1% Libor floor. The spread will increase by 50 bps every three months until it hits a specified cap.

The company may issue common, preferred or other equity securities in lieu of a portion or all of the incremental term loan and notes in lieu of a portion or all of bridge loan.

Under the agreement, Spectrum Brands’ Global Auto Care business is being bought for $938 million in cash and $312 million of newly-issued equity to Spectrum Brands.

Closing is expected in the second fiscal quarter of 2019, subject to customary conditions, including regulatory approvals.

Debt to adjusted EBITDA is anticipated to be around 5 times at closing.

Energizer is a St. Louis-based manufacturer and distributor of consumer 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.