Energizer talks $600 million eight-year notes at 7 7/8% area yield; pricing Thursday

By Paul A. Harris

Portland, Ore., Jan. 17 – Energizer Holdings, Inc. talked its $600 million offering of eight-year senior notes (B2/B+) to yield in the 7 7/8% area, according to a syndicate source.

Books close at 12:30 p.m. ET on Thursday, and the deal is set to price and allocate thereafter.

Official talk comes inside of initial talk of 8% to 8¼%, according to market sources.

At that initial talk the deal was heard to be going well, playing to orders in excess of $2 billion, a trader said.

Citigroup Global Markets Inc. is the lead bookrunner for the Rule 144A and Regulation S for life offering. Barclays, J.P. Morgan Securities LLC, BofA Merrill Lynch and MUFG are the joint bookrunners.

Standard Chartered and TD Securities (USA) LLC are the co-managers.

The notes become callable at par plus 50% of the coupon after three years. They feature a three-year 40% equity clawback at par plus the coupon and a 101% poison put.

The St. Louis-based manufacturer and distributor of consumer products plans to use the proceeds to help fund the acquisition of Spectrum Brands’ Global Auto Care business.

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