By Paul A. Harris
Portland, Ore., Jan. 17 – Energizer Holdings, Inc. priced a $600 million issue of eight-year senior notes (B2/B+) at par to yield 7¾% on Thursday, according to market sources.
The yield printed at the tight end of yield talk in the 7 7/8% area and tighter than initial talk of 8% to 8¼%.
At that initial talk the deal played to as much as $6 billion of orders at 7 7/8%, which was the middle of final talk, sources said.
Citigroup Global Markets Inc. was the lead bookrunner for the Rule 144A and Regulation S for life offering. Barclays, J.P. Morgan Securities LLC, BofA Merrill Lynch and MUFG were the joint bookrunners.
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.
| Issuer: | Energizer Holdings, Inc.
|
| Amount: | $600 million
|
| Maturity: | Jan. 15, 2027
|
| Securities: | Senior notes
|
| Lead bookrunner: | Citigroup Global Markets Inc.
|
| Joint bookrunners: | Barclays, J.P. Morgan Securities LLC, BofA Merrill Lynch, MUFG
|
| Co-managers: | Standard Chartered, TD Securities (USA) LLC
|
| Coupon: | 7¾%
|
| Price: | Par
|
| Yield: | 7¾%
|
| Spread: | 512 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until Jan. 15, 2022, then callable at 103.875
|
| Equity clawback: | 40% at 107.75 until Jan. 15, 2022
|
| Trade date: | Jan. 17
|
| Settlement date: | Jan. 28
|
| Ratings: | Moody's: B2
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7 7/8% area
|
| Marketing: | Roadshow
|
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