Spectrum Brands Holdings Inc. SPB, a global branded consumer products company, announced that it has completed restructuring and refinancing its capital structure, thereby strengthening its balance sheet and improving liquidity.
As part of this restructuring and refinancing initiative the company has replaced its term loan indebtedness, entered into a new $500 million cash flow revolving credit agreement with a comparatively smaller asset-backed lending organization and redeemed the $300 million principal amount of its 6.75% Senior Notes.
The company has a history of replacing its existing term loans with new ones as it remains keen on saving on corporate interest expenses in order to lower its cost of capital.
Moreover, the above mentioned initiatives have helped the company to consolidate its debts, extend maturities and enhance its operating flexibility.
These initiative came after Spectrum Brands acquired Armored AutoGroup on May 21, for which it raised $575 million through equity issuance and $1 billion through 5.75% Senior Notes. Going forward, with Armored AutoGroup’s market-leading brands under its turf, the company expects to achieve accelerated growth.
Following the acquisition, Spectrum Brands updated its fiscal 2015 outlook. It now expects net sales to grow by mid-single digits, compared to previous guidance of low-to-mid single digits growth. Moreover, it envisions free cash flow generation of roughly $440 million, compared with $400 million expected earlier.
Currently, Spectrum Brands carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
Some better-ranked consumer discretionary products stocks include Nutrisystem Inc. NTRI, FTD Companies, Inc. FTD and SodaStream International Ltd. SODA. While Nutrisystem sports a Zacks Rank #1 (Strong Buy), FTD Companies and SodaStream International carry a Zacks Rank #2 (Buy).
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