Energizer term loan, bonds late January/early February business

By Sara Rosenberg

New York, Jan. 10 – Energizer Holdings Inc. is anticipated to launch in late January or early February its proposed term loan and bond offering for the acquisition of Spectrum Brands’ Global Auto Care business, according to a market source.

The company has received a commitment for a $500 million senior secured incremental first-lien term loan and is planning on issuing $600 million of bonds, the source said.

Under the commitment letter, the company may issue common, preferred or other equity securities in lieu of a portion or all of the incremental term loan.

Backing the bonds is a commitment for a $600 million senior unsecured one-year bridge loan.

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

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.

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