Energizer Holdings, Inc. Announces Conditional Full Redemption of 7.750% Senior Notes Due 2027

Rhea-AI Summary

Energizer Holdings (NYSE: ENR) announced a conditional redemption of $600 million in 7.750% Senior Notes due 2027, set for January 8, 2021. This redemption hinges on successfully securing a $650 million senior secured incremental term loan credit facility by December 22, 2020. The redemption price will include the principal, a make-whole premium, and accrued interest. This announcement does not constitute a formal notice of redemption and is subject to specific terms under the indenture governing the Notes.

Positive

• Conditional redemption could lead to improved financial flexibility.
• Securing a $650 million term loan indicates strong financing strategy.

Negative

• Dependence on securing the term loan raises risks if not realized.

ST. LOUIS, Dec. 8, 2020 /PRNewswire/ -- Energizer Holdings, Inc. (NYSE: ENR) (the "Company") today announced that it will give a notice of conditional redemption to redeem all $600 million principal amount outstanding of its 7.750% Senior Notes due 2027 (the "Notes") pursuant to the terms of the indenture governing the Notes (the "Redemption").  The Redemption is conditioned upon, among other things, the consummation of a senior secured incremental term loan credit facility in an aggregate principal amount of $650 million under an amended and restated credit agreement to be entered into on or around December 22, 2020 on terms and conditions satisfactory in all respects to the Company in its sole discretion.

The date the Company has fixed for the Redemption is January 8, 2021, which may be delayed by the Company in its sole discretion in accordance with the terms of the indenture governing the Notes (such date, as it may be so delayed, the "redemption date"), subject to the conditions for redemption being satisfied or waived.  The aggregate redemption price for the Notes will be equal to 100% of the principal amount of the Notes redeemed plus a "make-whole" premium calculated as set forth in the Notes and the indenture governing the Notes, plus accrued and unpaid interest, if any, to, but excluding, the redemption date.  The redemption price for the Notes will be calculated no later than two business days prior to the redemption date in accordance with the terms of the Notes.

This press release does not constitute a notice of redemption under the indenture governing the Notes or an obligation to issue a notice of redemption.  Any such notice, if given, will only be given in accordance with the provisions of the indenture governing the Notes.

About Energizer Holdings, Inc.

Energizer Holdings, Inc. (NYSE: ENR), headquartered in St. Louis, Missouri, is one of the world's largest manufacturers and distributors of primary batteries, portable lights, and auto care appearance, performance, refrigerant, and fragrance products. Our portfolio of globally recognized brands include Energizer®, Armor All®, Eveready®, Rayovac®, STP®, Varta®, A/C Pro®, Refresh Your Car! ®, California Scents®, Driven®, Bahama & Co. ®, LEXOL®, Eagle One®, Nu Finish®, Scratch Doctor®, and Tuff Stuff®. As a global branded consumer products company, Energizer's mission is to lead the charge to deliver value to our customers and consumers better than anyone else.

Forward-Looking Statements

This document contains both historical and forward-looking statements. Forward-looking statements are not based on historical facts but instead reflect our expectations, estimates or projections concerning future results or events, including, without limitation, the future sales, gross margins, costs, earnings, cash flows, tax rates and performance of the Company. These statements generally can be identified by the use of forward-looking words or phrases such as "believe," "expect," "expectation," "anticipate," "may," "could," "intend," "belief," "estimate," "plan," "target," "predict," "likely," "should," "forecast," "outlook," or other similar words or phrases. These statements are not guarantees of performance and are inherently subject to known and unknown risks, uncertainties and assumptions that are difficult to predict and could cause our actual results to differ materially from those indicated by those statements. We cannot assure you that any of our expectations, estimates or projections will be achieved. The forward-looking statements included in this document are only made as of the date of this document and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances. Numerous factors could cause our actual results and events to differ materially from those expressed or implied by forward-looking statements, including those described under the heading "Risk Factors" in our Form 10-K filed with the Securities and Exchange Commission on November 17, 2020, and other risks and uncertainties detailed from time to time in our other publicly filed documents.  In addition, other risks and uncertainties not presently known to us or that we consider immaterial could affect the accuracy of any such forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty.

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SOURCE Energizer Holdings, Inc.

FAQ

What is the significance of Energizer Holdings' announcement on December 8, 2020?

Energizer Holdings announced a conditional redemption of $600 million Senior Notes due 2027, contingent on securing a $650 million term loan.

What is the redemption date for Energizer's Senior Notes?

The redemption date is set for January 8, 2021, but may be delayed at the company's discretion.

What conditions must be met for Energizer Holdings to redeem its Senior Notes?

Redemption is conditional upon consummating a $650 million senior secured incremental term loan credit facility.

What is the total redemption price for the Notes announced by Energizer?

The total redemption price includes 100% of the principal amount, a make-whole premium, and accrued unpaid interest.

What are the potential risks associated with Energizer's conditional redemption?

The main risk is the company's dependence on securing the $650 million term loan, which could impact the redemption if not achieved.