Rayovac bringing $500 million of bonds to back United Industries acquisition

By Paul A. Harris and Sara Rosenberg

St. Louis, Jan. 4 - Rayovac Corp. plans to sell $500 million of senior subordinated notes in an offering that figures to launch in late January, according to company and market sources.

Banc of America Securities LLC, Citigroup and Merrill Lynch & Co. will be joint bookrunners.

The company will also obtain a $1.2 billion to $1.25 billion credit facility via the same banks.

Proceeds will be used to fund the approximately $1.2 billion acquisition of United Industries, a St. Louis-based manufacturer and marketer of consumer products for lawn and garden care and household insect control, including $880 million of United Industries debt.

The transaction also has Rayovac issuing 13.75 million common shares and putting up $70 million of cash.

Rayovac is an Atlanta-based consumer products company and one of the largest battery, shaving and grooming, and lighting companies in the world.

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