energizer spinco inc- w/i (ENR-W) Key Developments
Energizer Holdings, Inc. Announces Dividend Policy; Declares Dividend, Payable on September 9, 2015
Jul 2 15
Energizer Holdings Inc. announced that its newly formed Board of Directors initiated a dividend program by declaring a dividend of $0.25 per share of common stock, payable on September 9, 2015, to all shareholders of record as of the close of business on August 19, 2015. Subject to declaration by the Board, Energizer anticipates paying a $0.25 per share cash dividend each quarter, with expected dividend payment dates in March, June, September and December. Future declarations of dividends are subject to Board approval and may be adjusted at the discretion of the Board, as business needs or market conditions change.
Energizer Holdings Inc. Provides Financial Guidance for Fiscal 2016
Jun 2 15
Energizer Holdings Inc. provided financial guidance for fiscal 2016. Annualized run rate for EBITDA would be in the $310 million to $325 million range. Divisional capital spending, excluding IT and corporate, has averaged around $30 million to $40 million. Going forward, including IT and corporate, the spending is expected to be in the range of $35 million to $45 million. Estimating a 31% to 33% effective tax rate. The parent company effective tax rate is around 29%, 29% to 30% historically. And free cash flow, remaining in the top tier of its peer group and free cash flow generation, expecting free cash flow to be in the 10% to 12% of sales.
Energizer Holdings, Inc. Enters into Senior Unsecured Revolving Credit Agreement
Jun 2 15
On June 1, 2015, Energizer Holdings Inc. entered into a senior unsecured revolving Credit Agreement (the Credit Agreement or the Revolving Facility) with JPMorgan Chase Bank, N.A., as administrative agent, and Bank of America, N.A., The Bank of Tokyo-Mitsubishi UFJ Ltd., and Citibank, N.A., as co-syndication agents, to borrow up to $600 million under a senior unsecured revolving loan. The Revolving Facility was undrawn on such date and the commitments of the lenders thereunder are contingent on Energizer's satisfying certain conditions to funding on or before July 2, 2015, including, without limitation, the completion of the Spin-Off (such date of satisfaction, the Effective Date). The Credit Agreement includes (i) a $25 million sublimit for the issuance of letters of credit on customary terms and (ii) a $10 million sublimit for swing line loans on customary terms. Energizer expects that the Revolving Facility will be used for general corporate purposes, including to refinance existing indebtedness and pay transaction fees and expenses in connection with the previously announced separation of Energizer's household products and personal care divisions (the Spin-Off). Borrowings under the Revolving Facility will bear interest at a rate per annum equal to, at the option of Energizer, (i) LIBOR plus the applicable margin of 1.075% - 1.575%, based on total leverage, or (ii) the Alternate Base Rate plus the applicable margin of 0.075% - 0.575%, based on total leverage. The loans and commitments under the Revolving Facility will mature or terminate on the fifth anniversary of the effective date.
Energizer Holdings Mulls Acquisitions
Jun 2 15
Energizer Holdings Inc. (NYSE:ENR) will continue to get great leverage out of our SG&A and through organic growth and acquisitions. Brian Hamm, Enterprise Vice President, Chief Financial Officer of the company said: “M&A. How we approach M&A will be different than the parent company. We'll focus on brands and bolt-on acquisitions, tuck-in acquisitions in the household products space, close to our core and are complementary; complementary in terms of financial characteristics, low CapEx requirements, high cash flow generator. We know how to run those types of businesses. Those are the types of brands and bolt-on acquisitions that will appeal to us. Complementary in terms of geographic reach, be complementary in terms of channel reach. Will drive standardization. You heard me talk about it. You heard Brian -- or Mark talk about it several times. We need to drive standardization in the event that an M&A opportunity comes about because we'll integrate it quickly to realize those synergies to make the deal accretive as fast as possible. M&A is part of the story. It's not the entire story. We've got a good core battery business that we're going to continue to optimize. However, if the right opportunity, at the right time and the right place and the right price comes about, it's going to be part of the story. It's going to be a part of how we deliver that long term shareholder value. So, in summary, we start with a strong and flexible balance sheet. No near term maturities, favorable rates, and access to a revolver to meet short term liquidity needs. The equation is simple -- maximize free cash flow. We'll do that by stabilizing revenue and continuing to expand margins and continuing to take cost out. We've identified those productivity targets, they're already in process and we're going to continue to execute. And finally, how we deliver value, long term value to the shareholder. It's by prudently allocating our capital; by reinvesting in the business, including productivity initiatives; it's providing a meaningful and competitive dividend; executing opportunistic share repurchases; and again, pursuing selective disciplined M&A.”
Energizer Holdings Inc. Borrows $1 Billion Under Its 364-Day Senior Unsecured Term Loan Credit
May 29 15
On May 29, 2015, Energizer Holdings Inc. borrowed $1 billion under its 364-day senior unsecured Term Loan Credit Agreement with Citibank, N.A., and the other financial institutions parties thereto, described in its Current Report on Form 8-K filed April 30, 2015. Approximately $890 million was used to prepay certain senior notes described under Item 8.01 below, approximately $60 million was used to repay borrowings under Energizer's existing revolving credit facility, and the balance will be used for general corporate purposes. On May 29, 2015, Energizer completed the prepayment with respect to its (i) $150 million 5.23% Senior Notes, Series 2005-D, (ii) $140 million 6.24% Senior Notes, Series 2006-D, (iii) $70 million 6.36% Senior Notes, Series 2007-E, (iv) $150 million 6.48% Senior Notes, Series 2007-F and (v) $310 million 6.55% Senior Notes, Series 2007-G (collectively, the Senior Notes). Energizer previously disclosed the issuance of irrevocable notices of prepayment of the Senior Notes in its Current Report on Form 8-K filed April 30, 2015. The prepayment amount included approximately $61 million in make-whole payments and approximately $9 million in accrued interest as required by the terms of the Senior Notes.