Energizer cuts spread on $1 billion term loan B to Libor plus 225 bps

By Sara Rosenberg

New York, June 21 – Energizer Holdings Inc. reduced pricing on its $1 billion seven-year covenant-light term loan B to Libor plus 225 basis points from Libor plus 250 bps, according to a market source.

In addition, the original issue discount on the term loan B firmed at 99.5, the wide end of the 99.5 to 99.75 talk, the source said.

The term loan B still has a 0% Libor floor and 101 soft call protection for six months.

The company’s $1.6 billion of credit facilities (BB+) also include a $400 million revolver and a $200 million term loan A.

J.P. Morgan Securities LLC is the left lead on the deal.

Proceeds will be used to help fund the $2 billion acquisition of Spectrum Brands’ Global Battery and Portable Lighting Business and to refinance Energizer’s existing credit facilities.

Other funds for the transaction will come from $500 million of senior notes and €650 million of senior notes.

Closing is expected before year-end, subject to regulatory approvals and customary conditions.

Energizer is a St. Louis-based manufacturer of primary batteries and portable lighting products.

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