Spectrum Brands Holdings Inc.
05/04/2026 | Press release | Distributed by Public on 05/04/2026 04:06
Material Event (Form 8-K)
Item 8.01 Other Events.
On May 1, 2026, Spectrum Brands Holdings, Inc. ("Parent") entered into a definitive agreement, through its indirect subsidiaries, for a strategic investment from funds affiliated with Oaktree Capital Management L.P. ("Oaktree") in its Home and Personal Care ("HPC") business for $127 million in cash, before transaction fees.
The investment by Oaktree consists of $67 million in the form of convertible preferred equity ("HPC Preferred Equity") and $60 million in the form of a first lien term loan on the HPC business ("HPC Term Loan"), which is recourse only to the HPC business. Dividends on the HPC Preferred Equity accrue at 8.0% per annum, compounded quarterly, and the HPC Term Loan bears interest at HPC's option at either SOFR plus 5.50% or the base rate plus 4.50%. Neither party has any obligation to make capital contributions into the HPC business. Following the closing, other than serving as collateral to the HPC Term Loan, the HPC business will no longer be part of the collateral package of the Parent's indebtedness.
The transaction is expected to close on or about May 11, 2026. Following the closing of the transaction upon receipt of required regulatory approvals, on a pro forma basis Oaktree will hold an approximately 27% equity stake in the HPC business, with the remainder held by a wholly-owned subsidiary of Spectrum Brands. This investment establishes a strategic partnership designed to support the long-term growth of the HPC business. This transaction represents a further step in Spectrum Brands' previously announced commitment to separate the HPC business from its other businesses.
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