Rayovac 2014 Annual Report Download - page 106

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SPECTRUM BRANDS HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(CONTINUED)
(Amounts in thousands, except per share figures)
equivalents (the “HHI Term Loan”) in connection with the acquisition of the residential hardware and home
improvement business (the “HHI Business”). A portion of the HHI Term Loan proceeds were used to refinance
the former term loan facility, which was scheduled to mature on June 17, 2016, and had an aggregate amount
outstanding of $370,175 prior to refinancing. In connection with the refinancing, the Company recorded
accelerated amortization of portions of the unamortized discount and unamortized Debt issuance costs related to
the former term loan facility totaling $5,485 as an adjustment to Interest expense during Fiscal 2013.
The HHI Term Loan was issued at a 1.0% discount and recorded net of the $8,000 discount incurred. The
discount is reflected as an adjustment to the carrying value of principal, and is being amortized with a
corresponding charge to interest expense over the remaining life of the debt. In connection with the issuance of
the HHI Term Loan, the Company recorded $19,328 of fees during Fiscal 2013, of which $16,907 is classified as
Debt issuance costs within the accompanying Consolidated Statements of Financial Position and is being
amortized as an adjustment to interest expense over the remaining life of the HHI Term Loan, with the remainder
of $2,421 reflected as an increase to Interest expense during Fiscal 2013.
On September 4, 2013, the Company amended the senior term loan facility, issuing a tranche maturing
September 4, 2017, which provides for borrowings in an aggregate principal amount of $850,000, and a tranche
maturing September 4, 2019, which provides borrowings in an aggregate principal amount of $300,000 (together
with the HHI Term Loan, the “Term Loan”). The proceeds from the amendment were used to extinguish the
former 9.5% Notes, which were scheduled to mature on June 15, 2018, and for general corporate purposes. The
9.5% Notes had an outstanding amount of $950,000 prior to extinguishment.
The tranches related to the amendment of the Term Loan on September 4, 2013, were issued at a .5%
discount and recorded net of the $5,750 discount incurred. The discount is reflected as an adjustment to the
carrying value of principal, and is being amortized with a corresponding charge to interest expense over the
remaining life of the debt. In connection with the amendment of the Term Loan, the Company recorded $16,381
of fees during Fiscal 2013 which is classified as Debt issuance costs within the accompanying Consolidated
Statements of Financial Position and is being amortized as an adjustment to interest expense over the remaining
life of the Term Loan.
On December 18, 2013, the Company amended the Term Loan, issuing two tranches maturing September 4,
2019 which provide for borrowings in aggregate principal amounts of $215,000 and €225,000. The proceeds
from the amendment were used to refinance a portion of the Term Loan (formerly Tranche B) which was
scheduled to mature December 17, 2019, in an amount outstanding of $513,312 prior to refinancing. The
$215,000 additional U.S. dollar denominated portion was combined with the existing Tranche C maturing
September 4, 2019. The Company recorded accelerated amortization of portions of the unamortized discount and
unamortized Debt issuance costs related to the refinancing of the Term Loan totaling $9,216 as an adjustment to
interest expense during Fiscal 2014.
The additional Tranche C and Euro Term Loan debt were issued at a .125% discount and recorded net of the
discount incurred. Of this discount, $510 is reflected as an adjustment to the carrying value of principal, and is
being amortized with a corresponding charge to interest expense over the remaining life of the debt, and the
remainder of $146 is reflected as an increase to interest expense during Fiscal 2014. In connection with the
refinancing of a portion of the Term Loan, the Company recorded $7,236 of fees during Fiscal 2014 of which
$5,150 is classified as Debt issuance costs within the accompanying Consolidated Statements of Financial
Position and is being amortized as an adjustment to interest expense over the remaining life of the Term Loan,
with the remainder of $2,086 reflected as an increase to interest expense during Fiscal 2014.
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