Spectrum Brands to repay term loan, revolver with asset sale proceeds

By William Gullotti

Buffalo, N.Y., June 20 – Spectrum Brands Holdings, Inc. intends to repay in full the outstanding $392 million under its term loan facility and $715 million revolving credit facility using proceeds from an asset sale, according to a press release on Tuesday.

The company also intends to call the approximately $450 million outstanding 5¾% notes due July 15, 2025.

Spectrum Brands closed its anticipated sale of its hardware and home improvement segment to Assa Abloy for $4.3 billion ahead of schedule.

As previously reported, the transaction was slated to close on June 30.

After taxes, fees and customary price adjustments, the company expects to receive net proceeds totaling $3.6 billion from the sale.

Following the debt repayments, the company intends to permanently terminate the $500 million of revolving loan commitments under its $1.1 billion revolver, with the remaining $600 million of revolving loan commitments being available under its credit agreement for future borrowings.

Separately, the company’s board of directors approved a new stock repurchase program to authorize the purchase of up to $1 billion of common stock, replacing the prior stock repurchase program. Under the program, Spectrum Brands intends to enter an accelerated share repurchase agreement to purchase an aggregate of $500 million of common stock.

After paying down debt and funding the accelerated share repurchase program, the company expects to be at a net cash position at the end of fiscal year 2023.

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

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