Rayovac 2014 Annual Report Download - page 71

At September 30, 2014, we were in compliance with all covenants under the Senior Credit Agreement, the
indenture governing both the 6.375% Notes and the 6.625% Notes, the indenture governing the 6.75% Notes and
the credit agreement governing the ABL Revolving Credit Facility (the “ABL Credit Agreement”).
From time to time we may repurchase our existing indebtedness, including outstanding securities of SB/RH
Holdings, LLC or its subsidiaries, in the open market or otherwise.
See Note 6, “Debt,” of Notes to Consolidated Financial Statements included in this Annual Report on Form
10-K for additional information regarding our outstanding debt.
Financing Activities. Net cash used by financing activities was $343 million for Fiscal 2014 verses net cash
provided by financing activities of $1,280 million for Fiscal 2013.
The Fiscal 2014 net cash used consisted of the following: (i) proceeds related to the issuance of $524
million of Term Debt; (ii) a use of $765 million to repay debt under the Senior Credit Facilities; (iii) a use to pay
$62 million of dividends; (iv) a use to pay share-based tax withholdings of employees for vested stock awards of
$25 million; (v) a use of $5 million for treasury stock purchases; (vi) a use to pay $5 million of debt issuance
costs; and (vii) a use of $5 million for other financing activities.
The Fiscal 2013 net cash proceeds consisted of the following: (i) proceeds related to the issuance $1,936
million of Term Debt; (ii) proceeds related to issuance of $570 million of 6.625% Notes and $520 million of
6.375% Notes; (iii) a use of $1,061 million to extinguish $950 million of our 9.5% Notes, which included tender
and call premium of $111 million; (iv) a use of $571 million to repay debt under the Senior Credit Facilities;
(v) a use to pay $61 million of debt issuance costs; (vi) a use to pay $40 million of dividends; (vii) a use to pay
share-based tax withholdings of employees for vested stock awards of $20 million; (viii) a use of $3 million for
treasury stock purchases; and (ix) $11 million of proceeds from other financing activities. The primary use of the
net proceeds from borrowings was to fund the acquisitions discussed within “Liquidity and Capital Resources—
Investing Activities.”
Interest Payments and Fees
In addition to principal payments on our debt obligations mentioned above, we have annual interest payment
obligations of approximately $141 million in the aggregate. This includes interest under our 6.375% Notes of
approximately $33 million, interest under our 6.625% Notes of approximately $38 million and interest under our
6.75% Notes of approximately $20 million and interest under our Term Loan and ABL Facility of approximately
$50 million. Interest on our debt is payable in cash. Interest on the 6.375% Notes, the 6.625% Notes and the
6.75% Notes is payable semi-annually in arrears and interest under the Term Loan and the ABL Facility is
payable on various interest payment dates as provided in the Senior Credit Agreement and the ABL Credit
Agreement. We are required to pay certain fees in connection with our outstanding debt obligations. Such fees
include a quarterly commitment fee of up to 0.375% on the unused portion of the ABL Facility and certain
additional fees with respect to the letter of credit sub-facility under the ABL Facility.
Equity Financing Activities
During Fiscal 2014, we granted approximately 669 thousand 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 $51 million, which
represented unearned restricted stock compensation. Such unearned compensation is amortized to expense over
the appropriate vesting period.
From time to time we may repurchase our outstanding shares of Common Stock in the open market or
otherwise.
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