Bank of America Securities and MUFG Bank acted as joint lead arrangers and joint bookrunners on a new $425 million secured credit facility for Edgewell Personal Care.
Bank of America acted as the administrative agent and MUFG Bank acted as the syndication agent. Also participating in the bank syndicate are TD Securities, Barclays, Goldman Sachs Bank USA, Standard Chartered Bank and The Northern Trust Company.
When the transaction closes, the new credit facility will replace the company’s existing credit facility, which is scheduled to mature in June 2020.
“We are pleased to enter this new financing agreement, which represents an important step in further solidifying our capital structure, and appreciate the support of our lenders, who recognize the underlying strength and resiliency of our business,” Rod Little, CEO of Edgewell Personal Care, said. “Edgewell’s strong financial position, underpinned by our attractive cash flow generation, has enabled us to continue to reduce debt levels. The new financing agreement we announced today provides us with additional financial flexibility while we manage through the uncertainties of the current market environment.”
The new credit facility, expandable under an accordion feature, will provide for a five-year revolving line of credit and will bear interest at a range of 1.50% to 2.25% over LIBOR, depending on the net leverage level of the company. Since Edgewell has no outstanding borrowings under the previous credit facility, it expects that no cash will be utilized to pay down any outstanding debt upon termination of the existing credit facility.
Edgewell intends to use the net proceeds from the new credit facility for general corporate purposes. As of April 2, 2020, if the effectiveness of the new credit facility and the termination of the existing credit facility were to occur, Edgewell’s liquidity, comprising estimated cash on hand and available credit facilities, would be approximately $710 million. At the end of fiscal Q2/20, the company had a net debt to EBITDA leverage ratio of 2.0 times.
Edgewell is a consumer products company with a portfolio of brand names such as Schick, Wilkinson Sword, Edge, Skintimate, Playtex, Stayfree, Carefree, o.b., Banana Boat, Hawaiian Tropic, Bulldog, Jack Black and Wet Ones.
