Spectrum Brands expands multicurrency revolver tranche to $200 million

By Marisa Wong

Morgantown, W.Va., March 28 – Spectrum Brands Holdings, Inc. indirect wholly owned subsidiary Spectrum Brands, Inc. and wholly owned subsidiary SB/RH Holdings entered into a fifth amendment on Wednesday to their credit agreement dated June 23, 2015 with Deutsche Bank AG New York Branch as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The amendment increases Spectrum Brands’ multicurrency tranche of the revolving facility to $200 million from $100 million.

The amended credit facility now consists of a $1,241,000,000 U.S. term loan facility due June 23, 2022, a C$43.1 million Canadian term loan facility due June 23, 2022 and an $800 million revolving credit facility with a U.S. dollar tranche and a multicurrency tranche due March 6, 2022.

The total commitment amount of the U.S. dollar tranche of the revolver is $600 million, and the total commitment amount of the multicurrency tranche is $200 million. As of Wednesday, $25.5 million is available under the U.S. dollar tranche and $188.46 million is available under the multicurrency tranche.

The credit agreement allows Spectrum Brands to increase commitments by a total incremental amount not to exceed the sum of $900 million plus all voluntary prepayments of the credit facilities. Incremental amounts may be incurred as long as the first-lien leverage ratio on a pro forma basis would not exceed 3.25 to 1.00.

As of the amendment date, Spectrum Brands has not used any portion of the $900 million dollar prong to incur debt under incremental facilities.

All outstanding amounts under the U.S. term loan bear interest at Libor plus 200 basis points. The Canadian term loan bears interest at the BA rate, subject to a 0.75% floor, plus 350 bps.

All outstanding amounts under the revolver bear interest at Libor (or Euribor or the BA rate if funded in euros or Canadian dollars, respectively) plus 175 bps to 225 bps. The margin is based on total net leverage ratios.

The commitment fee is equal to 0.35% of the unused commitment amounts and may be reduced by 5 bps based on achieving a specified total net leverage ratio.

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

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