By Paul A. Harris
Portland, Ore., Nov. 2 - Spectrum Brands, Inc. priced an upsized $200 million add-on to its 9½% first-lien senior secured notes due June 15, 2018 (current ratings B1/B/) at 108.5 on Wednesday, according to an informed source.
The resulting yield is 7.29%.
The reoffer price came at the rich end of the 108 to 108.5 price talk.
Credit Suisse Securities (USA) LLC ran the books for the quick-to-market issue, which was upsized from $150 million.
The Madison, Wis.-based consumer products company plans to use the proceeds for general corporate purposes, which may include, among other things, working capital, debt refinancing, business expansion and possible future acquisitions.
The original $750 million issue priced at 98.634 to yield 9¾% in June 2010.
| Issuer: | Spectrum Brands, Inc.
|
| Face amount: | $200 million, increased from $150 million
|
| Proceeds: | $217 million
|
| Maturity: | June 15, 2018
|
| Security description: | Add-on to 9½% first-lien senior secured notes due June 15, 2018
|
| Bookrunner: | Credit Suisse Securities (USA) LLC
|
| Coupon: | 9½%
|
| Price: | 108.5
|
| Yield: | 7.29%
|
| Spread: | 584 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until June 15, 2014, then callable at 104.75, 102.375, par on and after June 15, 2016
|
| Equity clawback: | 35% at 109.5 until June 15, 2013
|
| Change-of-control put: | 101%
|
| Trade date: | Nov. 2
|
| Settlement date: | Nov. 8 with accrued interest
|
| Existing ratings: | Moody's: B1
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 108 to 108.5
|
| Marketing: | Quick to market
|
| Original issue: | $750 million issue priced at 98.634 to yield 9¾% in June 2010
|
| Total issue size: | $950 million
|
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