InvestmentMay 4, 2026, 06:12 AM
Spectrum Brands HPC Secures $127M Oaktree Investment
AI Summary
Spectrum Brands Holdings, Inc. announced that its Home and Personal Care (HPC) business has secured a $127 million strategic investment from funds affiliated with Oaktree Capital Management L.P. The investment is structured as $67 million in convertible preferred equity and a $60 million first lien term loan, with Oaktree set to hold approximately a 27% equity stake in the HPC business. This partnership aims to support the long-term growth of the HPC business and is a further step in Spectrum Brands' plan to separate its HPC operations.
Key Highlights
- Spectrum Brands' HPC business secured a $127 million strategic investment from Oaktree Capital Management L.P.
- The investment comprises $67 million in convertible preferred equity and a $60 million first lien term loan.
- Oaktree will hold an approximately 27% equity stake in the HPC business post-closing.
- Dividends on the HPC Preferred Equity accrue at 8.0% per annum, compounded quarterly.
- The HPC Term Loan bears interest at SOFR plus 5.50% or base rate plus 4.50%.
- The transaction is expected to close around May 11, 2026, pending regulatory approvals.
- This investment supports the long-term growth of the HPC business and its separation from other Spectrum Brands businesses.