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Spectrum Brands Receives Final Court Approval
for $235 Million DIP Facility

Rayovac parent company moves forward with pre-negotiated restructuring of its debt

Spectrum Brands, Inc. Press Release

FlashlightNews.org - 3/10/2009


Click photo to enlarge

Rayovac Sportsman Extreme LED Lantern

Rayovac Sportsman Extreme LED Lantern

ATLANTA, Ga. - Spectrum Brands today announced that the U.S. Bankruptcy Court for the Western District of Texas, San Antonio Division, has granted final approval of its $235 million debtor-in-possession (DIP) credit facility, which provides the company with access to the full available amount of the facility as it seeks to implement a pre-negotiated restructuring of its debt. The Court had previously provided interim approval to the Company to access the financing.

The Court also granted final approval for a number of other interim orders that had been entered at the commencement of the bankruptcy case. The relief granted by the court will help ensure that Spectrum and all of its operating units in the U.S. and around the world continue to meet their respective obligations, subject to applicable limitations, to their suppliers, customers and employees in the ordinary course of business during the restructuring process.

As previously announced, Spectrum Brands has reached agreements with noteholders representing, in the aggregate, approximately 70% of the face value of its outstanding bonds to pursue a refinancing that, if implemented as proposed, will significantly reduce the Company's outstanding debt and put the Company in a stronger financial position for the future. To implement the refinancing in the most efficient manner and to take advantage of certain tax benefits, on February 3, 2009, Spectrum Brands and its U.S. subsidiaries filed voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Western District of Texas, San Antonio Division. The main case number is 09-50455. The Company's non-U.S. operations, which are legally separate, are not included in the Chapter 11 proceedings.

Kent Hussey, Chief Executive Officer of Spectrum Brands, said: "We are pleased to have received this final authorization from the court for our DIP financing and a number of other orders that will help to ensure we continue to serve our customers, satisfy our suppliers, meet our employee obligations and operate our business as usual while we proceed through our pre-negotiated debt restructuring. We are also pleased with the results we're seeing so far for the quarter, which indicate that the Company's consolidated adjusted EBITDA results, excluding the growing products business, are ahead of our internal plan. With today's final authorization for the DIP financing, we hope to be able to continue this trend. We look forward to continuing to work with our business partners and suppliers as we move through this process, from which we expect to emerge with a stronger balance sheet and better positioned to pursue revenue and profit growth opportunities."

Additional information about the restructuring is available on the company's web site at spectrumbrands.com. In addition, the following hotlines are available as follows: for Customers at 866-441-2487; for Suppliers at 866-499-7557; and for Investors at 866-338-2415.

About Spectrum Brands, Inc.

Spectrum Brands is a global consumer products company and a leading supplier of consumer Batteries, specialty pet supplies, shaving and grooming products, household and lawn insect and pest control products, personal care products and portable lighting. Spectrum Brands' products are sold by the world's top 25 retailers and are available in more than one million stores in more than 120 countries around the world. Headquartered in Atlanta, Georgia, Spectrum Brands generated fiscal year 2008 net sales of $2.7 billion.

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