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Spectrum Brands Reaches Settlement
with Senior Term Lenders

Rayovac parent company filed voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court on February 3, 2009

Spectrum Brands Press Release

FlashlightNews.org - 6/30/2009


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Rayovac Batteries

Rayovac Batteries

ATLANTA, Ga. - Spectrum Brands today announced that it has reached agreement with the agent acting for the senior term lenders as to the terms of a settlement that would revise the terms of its senior term credit facility and resolve the senior term lenders' objection to Spectrum Brands' proposed Plan of Reorganization. The settlement remains subject to definitive documentation and is contingent upon bankruptcy court approval. A court hearing at which Spectrum is seeking confirmation of its proposed Plan of Reorganization is currently underway.

"We are very pleased to have reached this mutually agreeable settlement with our senior term lenders which we believe represents a major step forward in our efforts to implement our proposed Plan of Reorganization and ultimately emerge from Chapter 11 protection later this summer. We believe the Plan of Reorganization, including the proposed amendment to the senior term credit facility, will significantly improve the financial profile of the company," said Kent Hussey, CEO of Spectrum Brands.

The key terms of the proposed amendment to the senior term credit facility include:

• a floor on LIBOR rate of 150 basis points;

• an increase of 250 basis points in the applicable rate to apply to each tranche of the facility;

• increased required senior leverage ratios to allow a maximum senior leverage ratio of 5.75 through October 2010, 5.50 from October 2010 through October 2011; and 5.00 thereafter; and

• a change in the maturity of the senior term loans from March 2013 to June 2012.

The terms of the proposed amendment to the senior term credit facility are expected to be filed with the bankruptcy court in the coming days.

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 on February 3, 2009. 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.

Additional information about the restructuring is available on the Company's web site at spectrumbrands.com.

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.

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