Spectrum Brands Makes Voluntary $40 Million Prepayment on Term Loan Aug 25, 2011

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Small appliance maker Spectrum Brands Holdings, Inc. made a voluntary prepayment of $40 million to reduce its senior secured term loan to $577 million in an ongoing program to rapidly pay down debt and strengthen its balance sheet.

Spectrum Brands also made voluntary prepayments of $50 million in November 2010, $20 million in December 2010, $20 million in May 2011, and $40 million in July 2011 on its original term loan of $750 million. Scheduled amortization accounted for an additional $3 million reduction.

"We remain on schedule to achieve a cumulative debt reduction on our Term Loan of at least $200 million in fiscal 2011 which began last October 1st," said Spectrum Brands CEO Dave Lumley. "The number-one use of our free cash flow is aggressive debt reduction to reach a target leverage ratio of 3.5 times or less by the end of fiscal 2011 and 3 times or less by the end of fiscal 2012."

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