08.25.11
Spectrum Brands Holdings, Inc. has announced a voluntary prepayment of $40 million to reduce its senior secured term loan to $577 million in the company’s ongoing program to rapidly pay down debt and significantly strengthen its balance sheet.
The company previously made voluntary prepayments of $50 million in November 2010, $20 million in December 2010, $20 million in May 2011, and $40 million in July 2011 on its original Term Loan of $750 million. Scheduled amortization accounted for an additional $3 million reduction.
“We remain on schedule to achieve a cumulative debt reduction on our Term Loan of at least $200 million in fiscal 2011 which began last October 1st,” said Dave Lumley, CEO of Spectrum Brands Holdings. “The number-one 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. We are focused on growing our EBITDA, generating strong free cash flow and rapidly reducing debt to create significant shareholder value.”
Spectrum Brands Holdings, Inc., offers shaving and grooming products, personal care products, home pest control products, personal insect repellents and a range of other goods. Its brands brands including Remington, Spectracide, Cutter, Repel, and Hot Shot.