Spectrum Brands Holdings, Inc. (NYSE:SPB), a global consumer products
company with market-leading brands, said today it has further
strengthened its balance sheet and improved liquidity by completing a
restructuring and refinancing of its capital structure.
The Company has completed the replacement of its term loan indebtedness,
moved to a new $500 million cash flow revolving credit agreement from a
smaller asset-backed lending facility, and retired its $300 million
aggregate principal amount of 6.75% Senior Notes. These actions follow
the recent $575 million equity issuance and $1 billion amount of 5.75%
Senior Notes issued to fund the acquisition of Armored AutoGroup Parent
Inc. (Armored AutoGroup) on May 21st and the retirement of
high cost debt assumed in that transaction.
“These important term loan and credit facility transactions have allowed
us to consolidate debt tranches, extend maturities and significantly
increase our operating liquidity and flexibility at historically low
interest rates,” said Andreas Rouvé, Chief Executive Officer of Spectrum
Brands Holdings. “We are pleased to have further strengthened our
balance sheet and simplified our capital structure as we execute our
long-term strategy and growth plans and begin to rapidly de-lever
following our accretive acquisition of the Armored AutoGroup.”
“We have quickly begun the integration of Armored AutoGroup,” Mr. Rouvé
said, “and are moving forward on action plans to accelerate the growth
of the market-leading Armor All®, STP® and A/C PRO® brands here and
abroad.”
“Our Company has completed a number of very significant and
value-creating moves in recent weeks that position Spectrum Brands for
accelerated growth and expansion in the months and years ahead,” said
David Maura, Chairman of the Board of Spectrum Brands. “We will continue
to grow our adjusted EBITDA and sustainable free cash flow while
maintaining a strong balance sheet. As I’ve said before, I believe our
best days are still ahead of us.”
About Spectrum Brands Holdings, Inc. and Spectrum Brands, Inc.
Spectrum Brands Holdings, a member of the Russell 2000 Index, is a
global and diversified consumer products company and a leading supplier
of consumer batteries, residential locksets, residential builders’
hardware, plumbing, shaving and grooming products, personal care
products, small household appliances, specialty pet supplies, lawn and
garden and home pest control products, personal insect repellents, and
auto care products. Helping to meet the needs of consumers worldwide,
our Company offers a broad portfolio of market-leading, well-known and
widely trusted brands including Rayovac®, VARTA®, Kwikset®, Weiser®,
Baldwin®, National Hardware®, Pfister™, Remington®, George Foreman®,
Black + Decker®, Farberware®, Tetra®, Marineland®, Nature’s Miracle®,
Dingo®, 8-in-1®, FURminator®, IAMS®, Eukanuba®, Digest-eeze™,
Healthy-Hide®, Littermaid®, Spectracide®, Cutter®, Repel®, Hot Shot®,
Black Flag®, Liquid Fence®, Armor All®, STP® and A/C PRO®. Spectrum
Brands' products are sold by the world's top 25 retailers and are
available in more than one million stores in approximately 160
countries. Based in Middleton, Wisconsin, Spectrum Brands Holdings
generated net sales of approximately $4.43 billion in fiscal 2014.
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 refinancing described above, the achievement of the expected
benefits of the Armored AutoGroup acquisition, expected sales, adjusted
EBITDA, debt reduction and leverage, and other measures of financial
performance, may be forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements are
identified by words such as “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
Holdings’ ability to manage and otherwise comply with its covenants with
respect to its significant outstanding indebtedness, (2) our ability to
integrate and realize synergies from our recent acquisitions and any
possible future acquisitions, including the Armored AutoGroup
acquisition, (3) risks related to 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 Holdings offers, (5) unfavorable developments in the global
capital 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 Holdings does business, such as stock
market prices, interest rates, currency exchange rates, inflation and
consumer spending, (9) Spectrum Brands Holdings’ ability to successfully
implement manufacturing, distribution and other cost efficiencies and to
continue to benefit from its cost-cutting initiatives, (10) Spectrum
Brands Holdings’ ability to identify, develop and retain key employees,
(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
SB/RH Holdings, LLC, including each of their most recently filed Annual
Reports on Form 10-K or Quarterly Reports on Form 10-Q.
Spectrum Brands Holdings also 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 Holdings and management’s reasonable
assumptions about market conditions, and consequently may be inaccurate,
or may not reflect significant segments of the retail market. Spectrum
Brands Holdings 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 Holdings 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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