By Paul A. Harris
Portland, Ore., Feb. 19 – Spectrum Brands Inc. priced an upsized $500 million issue of 10-year senior notes (B2/B/BB) at par to yield 3 7/8% in a Friday drive-by, according to market sources.
The issue size increased from $400 million.
The yield printed at the tight end of the 3 7/8% to 4% yield talk. Initial guidance was in the low 4% area.
Left lead bookrunner RBC Capital Markets LLC will bill and deliver. Joint bookrunners were 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.
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. The additional proceeds will be used to increase the tender offer by $50 million and put cash on the balance sheet.
| Issuer: | Spectrum Brands Inc.
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| Amount: | $500 million, increased from $400 million
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| Maturity: | March 15, 2031
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| Securities: | Senior notes
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| Left bookrunner: | RBC Capital Markets LLC (bill and deliver)
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| Joint bookrunners: | 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.
|
| Co-managers: | CJS Securities Inc., BNP Paribas Securities Corp. and UBS Securities LLC
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| Coupon: | 3 7/8%
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| Price: | Par
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| Yield: | 3 7/8%
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| Spread: | 253.2 bps
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| First call: | March 15, 2026 at 101.938
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| Trade date: | Feb. 19
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| Settlement date: | March 3
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| Ratings: | Moody's: B2
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| S&P: B
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| Fitch: BB
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | 3 7/8% to 4%
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| Marketing: | Drive-by
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