Spectrum Brands gives final tender results for 6 1/8%, 5¾% notes

By Taylor Fox

New York, March 16 – Spectrum Brands Holdings, Inc. wholly owned subsidiary Spectrum Brands, Inc. announced the final results on its tender offers for its 6 1/8% senior notes due 2024 (Cusip: 84762LAS4) and its 5¾% senior notes due 2025 (Cusip: 84762LAU9), according to a news release.

2024 tender offer

As announced on Feb. 16, Spectrum offered to purchase any and all of its $250 million outstanding 6 1/8% senior notes due 2024.

As of the 11:59 p.m. ET March 15 expiration time, a total of $165,527,000 of the notes had been tendered and accepted, unchanged as of the consent expiration time at 5 p.m. ET March 1.

The tendered notes were settled on March 2. The company paid a total consideration of $1,024.10 per $1,000 of notes, an amount that includes a $50 consent payment for holders who delivered consents under the related consent solicitation.

The tender offer consideration would have been $974.10 per $1,000 of notes tendered after the consent expiration time. Final settlement was scheduled for March 17.

The remaining 2024 notes outstanding will be redeemed on March 16 at 102.042.

2024 consent solicitation

Spectrum had launched a consent solicitation to amend the 2024 notes, seeking to shorten the notice period for the redemption of the notes to three days from 30 days and eliminate substantially all of the restrictive covenants and some events of default in the 2024 note indenture.

The company had received consents representing 66.21% of the outstanding 2024 notes as of the consent expiration time.

2025 tender offer

The company also conducted a tender offer for up to $500 million of its $1 billion outstanding 5¾% senior notes due 2025. On Feb. 19 the tender cap was increased to $550 million.

As of the early tender time at 5 p.m. ET March 1, Spectrum had received tenders for $584,821,000 of the outstanding amount of notes. The company accepted for purchase $550,033,000 of the tendered notes.

Because the offer was oversubscribed as of the early tender time, no additional 2025 notes tendered were accepted for purchase.

Spectrum paid a total consideration of $1,032.10 per $1,000 note, an amount that includes an early tender payment of $50 per $1,000 of notes tendered by the early tender time.

The offers were conditioned on Spectrum obtaining new incremental term loans and issuing new notes, proceeds of which were used along with cash on hand to fund the tender offers.

RBC Capital Markets, LLC is the dealer manager for the tender offers (877 381-2099, 212 618-7843).

Global Bondholder Services Corp. is the information agent and tender agent (866 470-3700, 212 430-3774).

The consumer products and home essentials company is based in Middleton, Wis.

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