Spectrum Brands driving by with $400 million 10-year senior notes; initial talk low 4% area

By Paul A. Harris

Portland, Ore., Feb. 19 – Spectrum Brands Inc. plans to price a $400 million offering of 10-year senior notes (existing ratings B2/B/BB) in a Friday drive-by trailing a late-morning conference call with investors, according to market sources.

Initial guidance has the notes coming to yield in the low 4% area, a trader said.

Left lead bookrunner RBC Capital Markets LLC will bill and deliver. Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BofA Securities Inc., Wells Fargo Securities LLC, Barclays and Deutsche Bank Securities Inc. are the joint bookrunners.

The Rule 144A and Regulation S notes come with five years of call protection.

The Middleton, Wis.-based consumer products company plans to use the proceeds plus proceeds from a new term loan and cash on hand to fund tender offers for its 6 1/8% senior notes due 2024 and its 5¾% senior notes due 2025.

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