Spectrum Sells $1.09B in Bonds

Spectrum Brands sold $1.09 billion on the high yield bond market in a two-part offering. The deal was upsized from $1.04 billion.

The Madison, Wis.-based consumer products company issued $570 million in 6.625% senior notes due 2022 and $520 million in 6.375% senior notes due 2020. Both tranches priced at par and slightly below their respective price talk of 6.75% and 6.5%.

Barclays was the lead bookrunner.

The company plans to use the proceeds to help finance its $1.4 billion acquisition of the Hardware & Home Improvement Group (HHI) of Stanley Black & Decker. It also plans to use some of the proceeds to refinance an existing term loan.

Spectrum is also on the market with a new $800 million term loan B.

Moody’s Investors Service assigned a B3 rating to the bonds and a Ba3 rating to the proposed term loan. Standard & Poor’s rated the bonds B- and gave a B rating to the proposed term loan B.

As of June 30, Spectrum had approximately $1.8 billion in outstanding, long-term debt, according to an Aug. 7 regulatory filing.