Spectrum Brands holders tender $898.07 million 9½% notes due 2018

By Angela McDaniels

Tacoma, Wash., Sept. 4 - Spectrum Brands Holdings, Inc. said holders tendered $898,067,000, or 94.5%, of Spectrum Brands, Inc.'s $950 million outstanding 9½% senior secured notes due 2018.

A tender offer for the notes began Aug. 6 and ended at 11:59 p.m. ET on Sept. 3. Settlement was slated for Sept. 4.

The company has called the remaining $51,933,000 of notes. They will be redeemed at par plus the applicable premium and accrued interest on Oct. 7, according to a company news release.

The company also solicited consents to amend the indenture governing the 9½% notes to remove substantially all restrictive covenants, some events of default and other related provisions and to release the collateral currently securing the notes.

Holders had tendered $893,067,000, or 94.01%, of the notes as of 5 p.m. ET on Aug. 19, the consent deadline. That was enough to execute a supplemental indenture amending the indenture.

The tender offer payment is $1,116.38 for each $1,000 principal amount of notes. This includes a $30.00 consent payment for each note tendered by the consent deadline.

The company will also pay accrued interest up to but excluding the settlement date.

The tender offer was conditioned on financing and the receipt of tenders for a majority of the notes.

The tender offer and redemption are being funded with $1.15 billion of new term loans.

Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-0083) and Deutsche Bank Securities Inc. (855 287-1922 or 212 250-7527) were the dealer managers and solicitation agents for the tender offer and the consent solicitation. Global Bondholder Services Corp. (866 857-2200 or 212 430-3774) was the information agent.

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

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