Moody's: Spectrum notes B1

Moody's Investors Service said it rated a $200 million add-on senior secured note offering of Spectrum Brands at B1.

At the same time, Moody's said it affirmed the following ratings: B1 corporate family rating, B1 probability of default rating, B1 term loan rating, B1 secured note rating, B3 subordinated note rating and SGL-2 speculative grade liquidity rating.

The outlook is stable.

"We think the most likely use of the proceeds will be to fund small acquisitions such as the recently announced asset acquisition of the Black Flag and TAT brands from the Homax Group," Kevin Cassidy, senior credit officer at Moody's, said in a news release.

Absent acquisitions, Moody's said it thinks the proceeds would be used to repay its term loan.

"Spectrum's commitment to paying down debt is evident by its actions so far this year, where they have repaid over $200 million of debt," Cassidy added in the release.

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