Spectrum Brands wraps $1.23 billion term loan prepayment

By Wendy Van Sickle

Columbus, Ohio, Jan. 4 – Spectrum Brands, Inc. completed the full prepayment of its credit agreement term loans totaling $1.23 billion, according to an announcement from parent Spectrum Brands Holdings, Inc.

The company announced conditional plans to prepay the term loans in December, contingent upon, among other things, the sale of Spectrum’s global battery, lighting and portable power business.

The sale closed on Jan. 2 and its proceeds were used to prepay the term loans.

The company said this prepayment is the first step toward strengthening its capital structure.

“We expect to further reduce debt by redeeming a significant portion or all of our $890 million of 7¾% senior notes at the end of January,” David M Maura, executive chairman and chief executive officer of Spectrum Brands Holdings, said in the release.

“We also remain on track to close the sale of our auto care business to Energizer Holdings for $1.25 billion, including cash of $937.5 million and equity of $312.5 million.”

Spectrum is a Middleton, Wis.-based consumer products company.

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