By Paul A. Harris
Portland, Ore., April 15 – Energizer Holdings, Inc. priced an upsized $250 million add-on to its 6 3/8% senior notes due July 15, 2026 (B2/B+) at 102.25 in a Wednesday drive-by, according to a syndicate source.
The execution renders a 5.765% yield to worst and a 5.935% yield to maturity.
Citigroup Global Markets Inc. was the lead bookrunner. Joint bookrunners were BofA Securities Inc., J.P. Morgan Securities LLC, Barclays and MUFG.
The issue size increased from $200 million.
The price came at the rich end of price talk in the 102 area.
The St. Louis-based manufacturer of batteries and portable lighting products plans to use the proceeds, including those resulting from the $50 million upsize of the issue, to repay debt under its revolving credit facility.
Issuers: | Energizer Holdings, Inc.
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Amount: | $250 million, increased from $200 million
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Maturity: | July 15, 2026
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Security description: | Add-on to 6 3/8% senior notes due July 15, 2026
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Lead bookrunner: | Citigroup Global Markets Inc.
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Joint bookrunners: | BofA Securities Inc., J.P. Morgan Securities LLC, Barclays and MUFG
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Co-managers: | Standard Chartered Bank and TD Securities (USA) LLC
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Coupon: | 6 3/8%
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Price: | 102.25
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Yield to worst: | 5.765%
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Yield talk maturity: | 5.935%
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Spread: | 560 bps
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First call: | July 15, 2021 at 103.188
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Equity clawback: | 40% at 106.375 until July 15, 2021
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Trade date: | April 15
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Settlement date: | April 22 with accrued interest interest
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Ratings: | Moody's: B2
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| S&P: B+
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Distribution: | Rule 144A and Regulation S
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Price talk: | 102 area
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Marketing: | Drive-by
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Original issue: | $500 million priced in June 2018
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Fungibility: | Rule 144A notes to immediately become fungible with original notes; Regulation S notes to become fungible with original notes following 40-day seasoning period
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Total issue size: | $750 million
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