Rayovac 2011 Annual Report Download - page 83

interest under the Senior Credit Facilities is payable on various interest payment dates as provided in the Senior
Credit Agreement and the ABL Credit Agreement. Interest is payable in cash, except that interest under the 12%
Notes is required to be paid by increasing the aggregate principal amount due under the subject notes unless we
elect to make such payments in cash. Effective with the payment date of August 28, 2010, we elected to make the
semi-annual interest payment scheduled for February 28, 2011 in cash. Thereafter, we may make the semi-annual
interest payments for the 12% Notes either in cash or by further increasing the aggregate principal amount due
under the notes subject to certain conditions. Based on amounts currently outstanding under the Senior Credit
Facilities, and using market interest rates and foreign exchange rates in effect at September 30, 2011, we estimate
annual interest payments of approximately $27 million in the aggregate under our Senior Credit Facilities would
be required assuming no further principal payments were to occur and excluding any payments associated with
outstanding interest rate swaps. We are required to pay certain fees in connection with the Senior Credit
Facilities. Such fees include a quarterly commitment fee of up to 0.50% on the unused portion of the ABL
Revolving Credit Facility and certain additional fees with respect to the letter of credit subfacility under the ABL
Revolving Credit Facility.
Equity Financing Activities.
During Fiscal 2011, we granted approximately 1.7 million shares of restricted stock units to our employees
and our directors. All vesting dates are subject to the recipient’s continued employment with us, except as
otherwise permitted by our Board of Directors or in certain cases if the employee is terminated without cause.
The total market value of the restricted shares on the date of grant was approximately $49 million, which
represented unearned restricted stock compensation. Unearned compensation is amortized to expense over the
appropriate vesting period.
During Fiscal 2011, we filed a registration statement related to approximately 1.2 million additional shares
of our common stock to be sold to the public. We received net proceeds of approximately $30 million after
underwriting discounts and offering expenses. We expect to use the net proceeds of the sale of these common
shares for general corporate purposes, which may include, among other things, working capital needs, the
refinancing of existing indebtedness, the expansion of our business and acquisitions.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or
future effect on our financial condition, changes in financial condition, revenues or expenses, results of
operations, liquidity, capital expenditures or capital resources that are material to investors.
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