Rayovac $500 million 10-year notes talked to yield 7 1/8%-7 3/8%, to price Friday

By Paul A. Harris

St. Louis, Jan. 20 - Rayovac Corp.'s $500 million offering of 10-year senior subordinated notes (B3/B-) emerged Thursday with price talk of 7 1/8% to 7 3/8%, according to a syndicate source.

The notes are expected to price on Friday.

Banc of America Securities LLC, Citigroup and Merrill Lynch & Co. are joint bookrunners for the Rule 144A/Regulation S offering.

The notes will be non-callable for five years.

The company will also obtain a $1.2 billion credit facility.

Proceeds will be used to help fund the approximately $1.2 billion acquisition of United Industries, including the repayment of $880 million of United Industries debt. The transaction also has Rayovac issuing 13.75 million common shares and putting up $70 million of cash.

United Industries, based in St. Louis, makes consumer products for lawn and garden care and household insect control.

Rayovac is an Atlanta-based maker of battery, shaving and grooming, and lighting consumer products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.