Spectrum Brands sets price talk on U.S., euro and Canadian term loans

By Sara Rosenberg

New York, June 3 – Spectrum Brands Inc. released price talk on its $1.45 billion seven-year covenant-light term loan, €300 million seven-year covenant-light term loan and C$75 million seven-year covenant-light term loan with its lender call on Wednesday, according to a market source.

The U.S. term loan and the euro term loans are talked at Libor/Euribor plus 275 basis points to 300 bps with a 0.75% floor and an original issue discount of 99.5, and the Canadian term loan is talked at Libor plus 350 bps to 375 bps with a 0.75% floor and a discount of 99, the source said.

The term loans have 101 soft call protection for six months.

In addition to the term loans, the company’s new credit facility includes a $500 million revolver.

Commitments are due at 5 p.m. ET on June 11.

Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC are the bookrunners on the deal.

Proceeds will be used to refinance an existing $400 million ABL revolver, about $1.58 billion in term loans and $300 million of 6.75% notes due 2020.

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

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