Spectrum prepays another $20 million on term loan, now at $658 million

By Toni Weeks

San Diego, May 25 - Spectrum Brands Holdings, Inc. said that in connection with its ongoing program to pay down debt and strengthen its balance sheet, the company voluntarily prepaid $20 million of its senior secured term loan, reducing the amount owed on the facility to $658 million.

Spectrum made voluntary prepayments of $50 million in November 2010 and $20 million in December 2010 on its original $750 million term loan. Scheduled amortization accounted for another $2 million reduction.

Chief executive officer Dave Lumley said in a press release that because of Spectrum's goal for a $200 million debt reduction in fiscal 2011, which began Oct. 1, the company intends to make larger and more frequent prepayments on the loan in the second half of this year.

"The top priority use of our free cash flow is aggressive debt reduction to reach a target leverage ratio of 3.5 times or less by the end of fiscal 2011 and 3 times or less by the end of fiscal 2012," he said. "Our management team is focused on creating significant shareholder value by rapidly reducing debt from growing our EBITDA and generating strong free cash flow."

Madison, Wis.-based Spectrum is a diversified consumer products company.

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