Edgewell plans $1.6 billion credit facilities for Harry’s purchase

By Sara Rosenberg

New York, May 9 – Edgewell Personal Care Co. has received a commitment for $1.6 billion of senior secured credit facilities to help fund its acquisition of Harry’s Inc., according to a 10-Q filed with the Securities and Exchange Commission on Thursday.

Bank of America Merrill Lynch is the lead bank on the deal.

The facilities consist of a $400 million revolver, a $400 million term loan A and an $800 million term loan B, the filing said.

Under the terms of the agreement, about 79% of the total value of the transaction will be paid in cash and 21% will be paid in Edgewell common stock. Upon closing, Harry’s shareholders will own about 11% of Edgewell.

The cash and stock transaction values Harry’s at $1.37 billion.

In addition to the credit facilities, Edgewell will use cash on its balance sheet to fund the acquisition.

The combined company is expected to have pro forma gross debt to EBITDA of 5.2 times upon completion of the transaction and less than 3.5 times by year two post close.

Closing is expected by the end of the first quarter of 2020, subject to customary conditions and regulatory approval.

Edgewell is a Shelton, Conn.-based pure-play consumer products company. Harry’s is a New York-based seller of shaving tools and skin care products.

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