Rayovac 2015 Annual Report Download - page 136

SPECTRUM BRANDS HOLDINGS, INC.
SB/RH HOLDINGS, LLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(CONTINUED)
the 6.625% Notes (the “2020/22 Indenture”) requires the Company to make an offer, in cash, to repurchase all or
a portion of the applicable outstanding notes for a specified redemption price, including a redemption premium,
upon the occurrence of a change of control of the Company, as defined in such indenture.
The 2020/22 Indenture contains customary covenants that limit, among other things, the incurrence of
additional indebtedness, payment of dividends on or redemption or repurchase of equity interests, the making of
certain investments, expansion into unrelated businesses, creation of liens on assets, merger or consolidation with
another company, transfer or sale of all or substantially all assets, and transactions with affiliates.
In addition, the 2020/22 Indenture provides for customary events of default, including failure to make
required payments, failure to comply with certain agreements or covenants, failure to make payments when due
or on acceleration of certain other indebtedness, and certain events of bankruptcy and insolvency. Events of
default under the 2020/22 Indenture arising from certain events of bankruptcy or insolvency will automatically
cause the acceleration of the amounts due under the 6.375% Notes and the 6.625% Notes. If any other event of
default under the 2020/22 Indenture occurs and is continuing, the trustee for the 2020/22 Indenture or the
registered holders of at least 25% in the then aggregate outstanding principal amount of the 6.375% Notes, or the
6.625% Notes, may declare the acceleration of the amounts due under those notes.
The Company recorded $12.9 million and $14.1 million of fees in connection with the offering of the 6.375%
Notes and the 6.625% Notes, respectively during the year ended September 30, 2013 which were capitalized as debt
issuance costs and amortized over the remaining lives of the 6.375% Notes and 6.625% Notes, respectively.
6.75% Notes
On June 23, 2015, SBI called the 6.75% Notes. In connection with the call, SBI paid the trustee principal,
interest and a call premium sufficient to redeem the $300 million of 6.75% Notes outstanding. The trustee under
the indenture governing the 6.75% Notes accepted those funds in trust for the benefit of the holders and has
acknowledged the satisfaction and discharge of the 6.75% Notes and the indenture governing the 6.75% Notes.
On July 23, 2015, the Trustee redeemed the 6.75% Notes. In connection with the redemption, the Company
recognized $16.9 million of fees and expenses as interest expense and wrote off $4.1 million of debt issuance
costs as a non-cash charge to interest expense for the year ended September 30, 2015.
NOTE 10—LEASES
The Company has leases primarily pertaining to land, buildings and equipment that expire at various times
through July 2024. The Company’s minimum rent payments under operating leases are recognized on a straight-
line basis over the term of the leases. Future minimum rental commitments under non-cancelable operating leases
are as follows:
Amount
(in millions)
2016 ............................................ $ 39.7
2017 ............................................ 34.8
2018 ............................................ 25.2
2019 ............................................ 19.2
2020 ............................................ 12.0
Thereafter ....................................... 20.6
Total minimum lease payments ...................... $151.5
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