Target Remains Cumulative Debt Reduction of at Least $200 Million in
Fiscal 2011
MADISON, Wis., May 25, 2011 (BUSINESS WIRE) --
In its ongoing program to rapidly pay down debt and significantly
strengthen its balance sheet, Spectrum Brands Holdings, Inc. (NYSE: SPB)
announced today a voluntary prepayment of $20 million to reduce its
senior secured Term Loan to $658 million.
The Company made voluntary prepayments of $50 million in November 2010
and $20 million in December 2010 on its original Term Loan of $750
million. Scheduled amortization accounted for an additional $2 million
reduction.
"Given our target of at least $200 million of debt reduction in fiscal
2011 which began last October 1st," said Dave Lumley, Chief
Executive Officer of Spectrum Brands Holdings, "our goal is to make
larger and more frequent prepayments on our Term Loan balance in the
second half of this year, consistent with our business seasonality. The
top priority use of our free cash flow is aggressive debt reduction to
reach a target leverage ratio of 3.5 times or less by the end of fiscal
2011 and 3 times or less by the end of fiscal 2012.
"Our management team is focused on creating significant shareholder
value by rapidly reducing debt from growing our EBITDA and generating
strong free cash flow," Mr. Lumley said.
About Spectrum Brands Holdings, Inc.
Spectrum Brands Holdings, Inc., a member of the Russell 2000
Index, is a global and diversified consumer products company and a
leading supplier of batteries, shaving and grooming products, personal
care products, small household appliances, specialty pet supplies, lawn
& garden and home pest control products, personal insect repellents and
portable lighting. Helping to meet the needs of consumers worldwide, the
Company offers a broad portfolio of market-leading, well-known and
widely trusted brands including Rayovac(R), Remington(R), Varta(R), George
Foreman(R), Black & Decker (R), Toastmaster(R), Tetra(R), Marineland(R), Nature's
Miracle(R), Dingo(R), 8-in-1(R), Littermaid(R), Spectracide(R), Cutter(R), Repel(R),
and Hot Shot(R).Spectrum Brands Holdings' products are sold by the
world's top 25 retailers and are available in more than one million
stores in more than 120 countries around the world. Spectrum Brands
Holdings generated net sales of $3.1 billion from continuing operations
in fiscal 2010.For more information, visit www.spectrumbrands.com.
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 expected sales, adjusted EBITDA 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
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) the inability to integrate, and to realize synergies from, the
combined businesses of Spectrum Brands and Russell Hobbs, (3) risks that
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 credit 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 Spectrum Brands Holdings' and
Spectrum Brands' securities filings, including the most recently filed
Annual Report on Form 10-K for Spectrum Brands, Inc. 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.
SOURCE: Spectrum Brands Holdings, Inc.
Spectrum Brands Holdings, Inc.
Dave Prichard, 608.278.6141
