Spectrum Brands flexes $700 million U.S. term B to Libor plus 325 bps

By Sara Rosenberg

New York, Nov. 1 - Spectrum Brands Holdings Inc. reduced pricing on its $700 million U.S. term loan B to Libor plus 325 basis points from talk of Libor plus 350 bps to 375 bps, according to sources.

Pricing on the C$100 million term loan B firmed at BA plus 375 bps, sources said, versus earlier talk of BA plus 350 to 375 bps.

Both the U.S. and Canadian tranches continue to have a 1.25% floor and original issue discount of 99 and 101 soft call protection for one year.

The full spread and floor on the term loan debt is payable starting on the earlier of the closing date and Dec. 1.

Recommitments were due by 2 p.m. ET on Thursday, sources added.

Deutsche Bank Securities Inc. and Barclays are the lead banks on the senior secured term loan debt (Ba3/B/BB-).

Proceeds, along with $1.04 billion of senior unsecured bonds, will fund the $1.4 billion acquisition of the hardware and home improvement group of Stanley Black & Decker Inc. and some assets of Tong Lung Metal Industry Co. Ltd. from Stanley.

Pro forma for the transaction, the combined business will have $4.2 billion in sales and $678 million in adjusted EBITDA for fiscal year 2012.

Secured debt is 2.4 times and total debt is 3.1 times.

Closing on the hardware and home improvement group acquisition is expected in the first quarter of 2013, and the Tong Lung transaction is expected to close in the second quarter of fiscal 2013.

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

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