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8-K - FORM 8-K - Spectrum Brands Holdings, Inc. | c11657e8vk.htm |
EX-99.1 - EXHIBIT 99.1 - Spectrum Brands Holdings, Inc. | c11657exv99w1.htm |
Exhibit 99.2
Spectrum Brands, Inc. 601 Rayovac Drive Madison WI 53711-2497 P.O. Box 44960 Madison WI 53744-4960 (608) 275-3340 |
FOR IMMEDIATE RELEASE
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Contact: | Dave Prichard | ||||
608.278.6141 |
Spectrum Brands Completes Refinancing of
$680 Million Senior Secured Term Loan at Lower Interest Rate
$680 Million Senior Secured Term Loan at Lower Interest Rate
Madison,
WI, February 2, 2011 Spectrum Brands Holdings, Inc. (SBH, NYSE: SPB) and Spectrum
Brands, Inc. (SBI, and, together with SBH, the Company) announced today they have completed
the refinancing of SBIs existing $680 million Senior Secured Term Loan at a lower interest rate,
reflecting improved credit market conditions and the Companys strong performance and favorable
outlook.
The new SBI $680 million Senior Secured Term Loan facility, issued at par and due June 2016,
includes an interest rate of LIBOR plus 400 basis points, with a LIBOR minimum of 100 basis points,
compared with SBIs original term loans interest rate of LIBOR plus 650 basis points and a LIBOR
minimum of 150 basis points. The new facility reduces scheduled amortization to approximately $7
million per year, contains a one-year soft call protection of 1 percent on refinancing but none on
other voluntary prepayments, and has the same financial, negative (other than a more favorable
ability to repurchase other indebtedness) and affirmative covenants and events of default as the
existing facility.
At todays interest rates and assuming a $680 million term loan balance, this pricing would reduce
the Companys annual cash interest expense by more than $20 million.
In connection with the refinancing, the Company expects to record a pre-tax charge of approximately
$43 million, of which nearly $36 million is non-cash, in the second quarter of fiscal 2011 ending
April 3, 2011.
The Company reiterated its expectations for fiscal 2011, which began October 1, 2010, to increase
adjusted EBITDA to $455-$465 million and free cash flow to $155-$165 million while achieving a
cumulative debt reduction on its Senior Secured Term Loan of at least $200 million.
Exhibit 99.2
The Company made voluntary prepayments of $50 million in November 2010 and $20 million in December
2010 on its original $750 million Senior Secured Term Loan of June 2010, for a total prepayment
amount of $70 million to date.
About Spectrum Brands Holdings, Inc. and Spectrum Brands, Inc.
Spectrum Brands Holdings, Inc., a member of the Russell 2000 Index, operating through its wholly
owned subsidiary Spectrum Brands, Inc. (together, the Company or Spectrum Brands) is a global,
diversified and market-driven consumer products company and a leading supplier of batteries,
shaving and grooming products, personal care products, small household appliances, specialty pet
supplies, lawn & garden and home pest control products, personal insect repellents and portable
lighting. Helping to meet the needs of consumers worldwide, the Company offers a broad portfolio of
market-leading and widely trusted brands including Rayovac®, Remington®, Varta®, George Foreman®,
Black & Decker®, Toastmaster®, Tetra®, Marineland®, Natures Miracle®, Dingo®, 8-in-1®,
Littermaid®, Spectracide®, Cutter®, Repel®, and Hot Shot®. Spectrum Brands products are sold by
the worlds top 25 retailers and are available in more than one million stores in more than 120
countries around the world. Spectrum Brands generated net sales of $3.1 billion from continuing
operations in fiscal 2010. For more information, visit www.spectrumbrands.com.
Forward-Looking Statements
Certain matters discussed in this news release and other oral and written statements by
representatives of the Company regarding matters such as the Companys ability to meet its
expectations for its fiscal 2011 (including its ability to increase its adjusted EBITDA and free
cash flow and reduce its cumulative debt), may be forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. We have tried, whenever possible, to identify
these statements by using words like future, anticipate, intend, plan, estimate,
believe, expect, project, forecast, could, would, should, will, may, and similar
expressions of future intent or the negative of such terms. These statements are subject to a
number of risks and uncertainties that could cause results to differ materially from those
anticipated as of the date of this release. Actual results may differ materially as a result of (1)
Spectrum Brands ability to manage and otherwise comply with its covenants with respect to its
significant outstanding indebtedness, (2) risks related to our ability to integrate, and to realize
synergies from, the combined businesses of Spectrum Brands and Russell Hobbs, (3) risks that
changes and developments in external competitive market factors, such as introduction of new
product features or technological developments, development of new competitors or competitive
brands or competitive promotional activity or spending, (4) changes in consumer demand for the
various types of products Spectrum Brands offers, (5) unfavorable developments in the global credit
markets, (6) the impact of overall economic conditions on consumer spending, (7) fluctuations in
commodities prices, the costs or availability of raw materials or terms and conditions available
from suppliers, (8) changes in the general economic conditions in countries and regions where
Spectrum Brands does business, such as stock market prices, interest rates, currency exchange
rates, inflation and consumer spending, (9) Spectrum Brands ability to successfully implement
manufacturing, distribution and other cost efficiencies and to continue to benefit from its
cost-cutting initiatives, (10) Spectrum Brands ability to identify, develop and retain key
employees,
Exhibit 99.2
(11) unfavorable weather conditions and various other risks and uncertainties, including those
discussed herein and those set forth in the securities filings of each of Spectrum Brands Holdings,
Inc. and Spectrum Brands, Inc., including each of their most recently filed Annual Reports on Form
10-K or Quarterly Reports on Form 10-Q. Spectrum Brands cautions the reader that its estimates of
trends, market share, retail consumption of its products and reasons for changes in such
consumption are based solely on limited data available to Spectrum Brands and managements
reasonable assumptions about market conditions, and consequently may be inaccurate, or may not
reflect significant segments of the retail market.
Spectrum Brands also cautions the reader that undue reliance should not be placed on any
forward-looking statements, which speak only as of the date of this release. Spectrum Brands
undertakes no duty or responsibility to update any of these forward-looking statements to reflect
events or circumstances after the date of this report or to reflect actual outcomes.
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