Spectrum Brands gets default notice on 8½% senior subordinated notes for debt incurrence

By Caroline Salls

Pittsburgh, Jan. 16 - Spectrum Brands, Inc. received a notice of default on its 8½% senior subordinated notes due 2013 because of the company's incurrence of debt under its fourth amended credit agreement, according to an 8-K filing with the Securities and Exchange Commission.

The company believes that it is not in default under the terms of the notes indenture, as it believes that all existing debt was incurred in compliance with the indenture.

Spectrum has 60 days to cure the default.

An event of default could also result in the acceleration of the company's 7 3/8% senior subordinated notes due 2015 and the credit agreement, the filing said.

As of Sept. 30 there was $350 million in principal amount of the 8½% notes outstanding, $700 million of the 7 3/8% notes outstanding and $26 million outstanding under the revolving credit facility portion of the credit agreement, as well as $1.144 billion in other debt outstanding under the credit agreement.

Spectrum Brands is an Atlanta-based consumer products company and a supplier of batteries and portable lighting, lawn and garden care products, specialty pet supplies, shaving and grooming and personal care products, and household insecticides.

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