United Industries to redeem 9 7/8% notes with bank debt proceeds

New York, March 2 - United Industries Corp. (B3/B-) announced plans to refinance its existing bank debt and then use a portion of the anticipated proceeds to redeem the remainder of its outstanding 9 7/8% Series B subordinated notes due 2009.

The company issued $150 million of the 9 7/8% notes in March 1999 and issued another $85 million of the notes in March 2003.

United Industries, a St. Louis-based manufacturer and marketer of consumer lawn and garden care and insect control products, which it sells under the Spectrum Brands nameplate, said it plans to refinance the existing senior credit facility with a new senior facility of $510 million, consisting of a $385 million term loan and $125 million revolver.

Besides the 9 7/8% note redemption, proceeds from the new facility will be used to finance the separately announced $143.8 million all-cash acquisition of The Nu-Gro Corp., a Brantford, Ontario, manufacturer of packaged consumer and commercial lawn and garden products, and to redeem United's outstanding preferred stock.

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