Spectrum Brands taps incremental revolver for Tristar Products unit buy

Spectrum Brands Inc. disclosed that on Feb. 16, it drew down the entirety of its $350 million incremental revolver, using the proceeds for working capital and general corporate purposes, including funding the acquisition of Tristar Products' kitchen appliances and cookware business, which has been completed.

RBC is administrative agent.

On Feb. 3, the company borrowed $150 million of an incremental revolver.

Pricing on the revolver is tied to a leverage-based grid and benchmarked to the secured overnight financing rate, with pricing at Sofr+175-275, opening at Sofr+225. Pricing also includes credit spread adjustments of 10 basis points for the one-month rate, 15 bps for the three-month rate and 25 bps for the six-month rate.

As of Jan. 2, Spectrum had $465 million outstanding under its revolver due June 2025, $397 million outstanding under its term loan B due March 2028, $450 million outstanding under its 5.75% notes due July 2025, $482 million outstanding under its 4% notes due October 2026, $300 million outstanding under its 5% notes due October 2029, $300 million outstanding under its 5.5% notes due July 2030 and $500 million outstanding under its 3.875% notes due 2031.

Spectrum Brands is a diversified global branded consumer products company operating under four core business segments: hardware and home improvement, home and personal care, global pet care, and home and garden. Corporate issuer ratings are B/B1/BB.