United Industries Completes Refinancing Of Senior Credit Facility

by C-BW@CLARI.NET (UNITED INDUSTRIES VIA BIZWIRE) on 2004-04-30 12:10:07

Increases financial flexibility and achieves lower interest rates; closes Nu-Gro transaction
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ST. LOUIS--(BUSINESS WIRE)--April 30, 2004--United Industries
Corporation, which goes to market as Spectrum Brands, today announced
that it has closed on the refinancing of its existing senior credit
facility with a new $510 million senior secured credit facility. The
refinancing was completed in conjunction with the closing of its
previously announced acquisition of The Nu-Gro Corporation, Canada's
leading manufacturer and marketer of consumer lawn and garden products
and a leading global supplier of controlled release nitrogen and other
fertilizer technologies. The transaction creates a company with
approximately $750 million in pro forma net sales and the #1 or #2
position in almost every category in the North American consumer lawn
and garden care and household insect control markets.
Subject to the terms of the agreement, the refinancing includes a
six-year $125 million revolving credit facility, a seven-year $335
million term loan and a seven-year Canadian dollar denominated term
loan in the amount of US$50 million. The facility was arranged by Banc
of America Securities LLC and Citigroup Global Markets Inc. Citigroup
also acted as the company's advisor on the Nu-Gro transaction.
Dan Johnston, Executive Vice President and Chief Financial
Officer, said, "This refinancing increases our financial flexibility
and allows the company to take advantage of very favorable market
conditions and rates. The completion of this refinancing and our
combination with Nu-Gro are consistent with our strategy of marrying
industry-leading technology with innovative consumer solutions to
drive organic growth while we continue to target other opportunities
that drive market share growth with leading retailers in North
America."
Charles Brizius, Managing Director of Thomas H. Lee Partners,
United Industries' largest investor, said, "We remain strongly
committed to the company's continued growth under the leadership of
Bob Caulk and his management team. Spectrum Brands dominates the
value-oriented segment of the consumer lawn and garden and insect
control markets because of the company's proven ability to meet
retailers' needs for branded and exclusive label products that drive
category growth and profitability. The Nu-Gro transaction strengthens
the company's positioning in those segments, expanding its
consumer-market geography while adding considerable strength in the
important professional and fertilizer technology business segments."

About United Industries Corporation

United Industries Corporation, which goes to market as Spectrum
Brands (www.spectrumbrands.com), is the leading manufacturer and
marketer of value-oriented products for the consumer lawn and garden
care and household insect control markets in North America. The
company's lawn and garden brands include Spectracide(R), Spectracide
Triazicide(R), Spectracide Terminate(R), Garden Safe(R) and
Real-Kill(R) in the controls category as well as Sta-Green(R),
Vigoro(R), Schultz(TM), Peters(R), Bandini(R) and Best(R) brands in
the lawn and garden fertilizer and organic growing media categories.
The company's household brands include Hot Shot(R), Cutter(R) and
Repel(R). Through Nu-Gro, the company manufactures and markets such
consumer brand names as CIL(R), Wilson(R), Vigoro(R), Pickseed(R),
So-Green(R), Plant-Prod(R), Greenleaf(R) and Green Earth(R) in the
Canadian market. Nu-Gro also produces and distributes controlled
release nitrogen and other fertilizer technologies under the brand
names IB Nitrogen(R), Nitroform(R), Nutralene(R), Organiform(R) and
SCU(R) to the consumer, professional and golf industries worldwide.
Founded in 1969, the company is headquartered in St. Louis, Missouri.
(Bloomberg Symbol: 14496Z)

Certain statements in this press release regarding our business,
with the exception of historical facts, may be "forward-looking
statements" within the meaning of Section 27A of the Securities Act of
1933 and Section 21G of the Securities Exchange Act of 1934, as
amended, which involve risks and uncertainties, many of which are
beyond our control. When, and if, used herein, the words "will,"
"believe," "plan," "may," "anticipate," "intend," "expect," and
similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain such
identifying words. All forward-looking statements apply only as of the
date they are disclosed and are based on the respective company's
expectations at that time. Actual results could differ materially from
these statements as a result of weather conditions, our retailer line
item reviews, the loss of customers or product listings, changes in
external competitive market factors, unanticipated changes in the
financial performance of us, our customers, our industry or the
economy in general, public perception regarding the safety of our
products, as well as various other factors described in our filings
with the U.S. Securities and Exchange Commission. We do not undertake
any obligation to update or revise publicly any forward-looking
statements made by us or on our behalf, whether as a result of new
information, future events or otherwise. Although we believe that our
plans, intentions and expectations reflected in or suggested by any
forward-looking statements we make herein are reasonable, we can give
no assurance that such plans, intentions or expectations will be
achieved.