By Paul A. Harris
Portland, Ore., May 15 – Energizer SpinCo Inc. priced a $600 million issue of 10-year senior notes (Ba3/BB) at par to yield 5½% on Friday, according to market sources.
The yield printed 12.5 basis points below the tight end of the 5 5/8% to 5 7/8% yield talk. Early guidance had the deal coming in the high 5%-to-low 6% yield context.
BofA Merrill Lynch was the left bookrunner. J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Goldman Sachs & Co. and MUFG were the joint bookrunners.
Proceeds will be used to fund the spinoff of the household products business of St. Louis-based Energizer Holdings Inc. to shareholders.
| Issuer: | Energizer SpinCo, Inc.
|
| Amount: | $600 million
|
| Maturity: | June 15, 2025
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Goldman Sachs & Co., MUFG
|
| Co-manager: | Credit Suisse Securities (USA) LLC
|
| Coupon: | 5½%
|
| Price: | Par
|
| Yield: | 5½%
|
| Spread: | 337 bps
|
| Call protection: | Five years
|
| Trade date: | May 15
|
| Settlement date: | June 1
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5 5/8% to 5 7/8%
|
| Marketing: | Roadshow
|
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