Spectrum Brands Seeks $1.1 Billion Loan; U.S. Renal Reduces Rate

Spectrum Brands Holdings Inc. (SPB) is seeking $1.1 billion in loans to refinance debt as U.S. Renal Care Inc. lowered the rate on $495 million of loans it’s seeking to support its acquisition of Ambulatory Services of America.

Spectrum Brands, the maker of Kwikset locks and George Foreman grills, is seeking a $700 million, four-year term piece and a $400 million portion due in six years to refinance bonds that come due in June 2018, according to a person with knowledge of the deal. Both loans are covenant-light, meaning they don’t contain financial-maintenance requirements.

Spectrum Brands is proposing to pay interest at 2.5 percentage points more than the London interbank offered rate on the four-year portion and 3 percentage points more than Libor on the six-year slice, said the person, who asked not to be identified because terms are private. The lending benchmark on both loans will have a 1 percent minimum. The debt will be offered at 99 cents on the dollar, the person said. Lenders must let Credit Suisse Group AG, the arranging bank, know by Aug. 13 whether they will participate in the deal.

Kidney-dialysis provider U.S. Renal Care will pay interest at 4.25 percentage points more than Libor on a $335 million first-lien loan, down from 4.5 percentage points to 4.75 percentage points initially proposed, said another person, who asked not to be identified because the details are private.

Less Interest

A $160 million second-lien slice will pay interest at 7.5 percentage points more than the lending benchmark, down from 8 percentage points initially. Both loans will have a 1 percent minimum on Libor. Barclays Plc, the bank arranging the loan, requests commitments by 5 p.m. today.

Highbridge Principal Strategies priced a $414.1 million collateralized loan obligation via Citigroup Inc., according to a person with knowledge of the offering. The AAA piece priced at 130 basis points more than the lending benchmark. A basis point is 0.01 percentage point.

Haymarket Financial LLP priced a CLO of about 393 million euros ($523 million) to refinance an existing CLO, according to a person with knowledge of that transaction. The AAA portion priced at 170 basis points more than Euribor. Natixis led the deal.

Leveraged-loan prices in the U.S. fell 0.01 cent to 98.19 cents on the dollar today, according to the Standard & Poor’s/LSTA U.S. Leveraged Loan 100 Index.

With assistance from Jeannine Amodeo in New York and Patricia Kuo in London. --Editors:

To contact the reporter on this story: Krista Giovacco in New York at kgiovacco1@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.