By Paul A. Harris
Portland, Ore., Jan. 17 – Energizer Holdings, Inc. priced a $600 million issue of eight-year senior notes (B2/B+) at par to yield 7¾% on Thursday, according to market sources.
The yield printed at the tight end of yield talk in the 7 7/8% area and tighter than initial talk of 8% to 8¼%.
At that initial talk the deal played to as much as $6 billion of orders at 7 7/8%, which was the middle of final talk, sources said.
Citigroup Global Markets Inc. was the lead bookrunner for the Rule 144A and Regulation S for life offering. Barclays, J.P. Morgan Securities LLC, BofA Merrill Lynch and MUFG were the joint bookrunners.
The St. Louis-based manufacturer and distributor of consumer products plans to use the proceeds to help fund the acquisition of Spectrum Brands’ Global Auto Care business.
Issuer: | Energizer Holdings, Inc.
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Amount: | $600 million
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Maturity: | Jan. 15, 2027
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Securities: | Senior notes
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Lead bookrunner: | Citigroup Global Markets Inc.
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Joint bookrunners: | Barclays, J.P. Morgan Securities LLC, BofA Merrill Lynch, MUFG
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Co-managers: | Standard Chartered, TD Securities (USA) LLC
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Coupon: | 7¾%
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Price: | Par
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Yield: | 7¾%
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Spread: | 512 bps
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First call: | Make-whole call at Treasuries plus 50 bps until Jan. 15, 2022, then callable at 103.875
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Equity clawback: | 40% at 107.75 until Jan. 15, 2022
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Trade date: | Jan. 17
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Settlement date: | Jan. 28
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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 for life
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Price talk: | 7 7/8% area
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Marketing: | Roadshow
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