Energizer Holdings, Inc. has made significant moves in its debt refinancing activity, extending its maturity profile. The company priced $400 million in aggregate principal amount of 6.00% senior notes due 2033 at par, representing an increase from the initially announced offering size of $300.0 million. This indicates a 33.33% increase in the offering size of the senior notes.
In addition, the company completed a $100 million add-on to the existing term loan maturing in 2032. The term loan will continue to bear an interest rate equal to the secured overnight financing rate (SOFR) plus 200 basis points per annum. This add-on represents a 50% increase from the existing term loan.
These transactions are leverage neutral and are expected to extend the company’s debt maturity profile and reduce interest expense. The company intends to use the net proceeds from the notes and term loan add-on to redeem all of the company’s outstanding 6.50% senior notes due 2027, repay amounts due on the revolving credit facility, and for general corporate purposes.
The press release also indicates that both transactions are expected to close on or around September 22, 2025, subject to the satisfaction of applicable conditions.
Energizer Holdings, Inc., known for its globally recognized brands like Energizer, Armor All, Eveready, and Rayovac, is positioning itself for future growth through these strategic financial maneuvers. Today the company's shares have moved -0.4% to a price of $28.425. If you want to know more, read the company's complete 8-K report here.
