S&P assigns BB to Energizer notes

Standard & Poor's said it assigned its BB issue-level rating and 3 recovery rating to Energizer Holdings Inc.'s proposed $600 million senior unsecured notes due 2025.

The recovery rating indicates the belief that lenders could expect meaningful (50%-70%; upper half of the range) recovery in the event of payment default or bankruptcy.

All existing ratings on the company, including the BB corporate credit rating, remain unchanged.

The outlook is stable. Pro forma for the proposed refinancing, total debt outstanding is about $1 billion.

As part of the proposed spin-off, the company intends to use the $600 million in senior unsecured notes along with the recently announced $400 million in senior secured term loan B notes to fund a $1 billion payment to the remaining company, Edgewell Personal Care, at transaction close.

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