Spectrum Brands trims U.S. term loan size as euro loan size lifted

Sara Rosenberg

New York, Dec. 11 - Spectrum Brands Holdings Inc. downsized its U.S. term loan due September 2019 to $215 million from $250 million and upsized its euro term loan due September 2019 to €225 million from €200 million, according to a market source.

Also, the floor on the euro term loan was revised to 0.75% from 1% and the original issue discount talk was changed to 99¾ to 99 7/8 from just 993/4, the source said.

The spread on the euro loan is still talked at Euribor plus 300 basis points, and price talk on the U.S. term loan remained at Libor plus 275 bps with a 0.75% Libor floor and a discount of 99¾ to 99 7/8.

As before, the euro term loan has 101 soft call protection for six months and the U.S. term loan has 101 soft call protection through March 2014.

Commitments were due at noon ET on Wednesday.

By the afternoon, the original issue discounts on both the U.S. and the euro term loans firmed at 99 7/8, the source added.

Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC are the lead banks on the deal (BB/BB+).

Proceeds will be used to repay a $513 million U.S. term loan B due December 2019 that is priced at Libor plus 325 bps with a 1.25% Libor floor.

Closing is expected by Dec. 31.

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

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