Rayovac to use $300 million bonds, $50 million term loan add-on for Remington acquisition

By Sara Rosenberg

New York, Aug. 22 - Rayovac Corp. plans to finance the acquisition of Remington Products Co. through a $300 million senior subordinated note sale and $50 million add-on to its existing term loan B, company officials announced in a conference call Friday morning.

Furthermore, the company has obtained bridge financing in case it is necessary.

When asked what interest expense on the new debt is expected to be, the company declined to get into specifics, saying: "We'll let you know. We still have to do the financing. We still have to sell the bonds."

It is anticipated that the new bonds would replace Rayovac's existing debt as well, officials added during the call.

In addition, Remington's existing notes are also expected to be retired "in one form or another," although the Rayovac officials declined to comment on timing.

Under the acquisition agreement, Rayovac will purchase Remington for approximately $322 million, including the assumption of debt. The all-cash transaction is expected to close within the next 60 days and is expected to be accretive in fiscal 2004, according to a news release.

Citigroup Global Markets Inc. acted as advisor to Rayovac on the transaction. Bear, Stearns & Co. Inc. was the financial advisor to Remington.

Although banks for the financing have not been formally announced, Banc of America will "be a big part of it," John Dagget, Rayovac's director of corporate communications, told Prospect News. He also said Citigroup will likely be involved in the financing.

In terms of timing, Dagget said there will be a roadshow and noted the company announced the acquisition is expected to close in 60 days.

"Remington brings to Rayovac a strong record of solid growth and a line of shaving, grooming and personal care products that will provide exciting diversification to our current product offerings," said David Jones, Rayovac chairman and chief executive officer, in the release.

"Rayovac and Remington share a similar customer base, our products are sold through many of the same distribution channels and we're both firmly committed to technology and product innovation," Jones added.

Rayovac is a Madison, Wis. manufacturer of alkaline batteries and designer and distributor of battery-powered electric shavers and accessories, grooming products, hair care appliances and other small electrical consumer appliances. Remington is a Bridgeport, Conn. dry shaving and personal grooming products company.

(Paul Deckelman contributed to this report)

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