SPB · Spectrum Brands Holdings, Inc.

Spectrum Brands Holdings, Inc. announced a strategic investment from Oaktree Capital Management in its Home and Personal Care (HPC) business, totaling $127 million in cash. The investment comprises $67 million in convertible preferred equity and $60 million in a first lien term loan, both structured to support the HPC business's growth while limiting recourse to the parent company. The preferred equity carries an 8.0% annual dividend, and the term loan bears interest at SOFR plus 5.50% or base rate plus 4.50%. Post-closing, Oaktree will hold approximately 27% of the HPC equity on a pro forma basis, with Spectrum Brands retaining the remainder. The transaction is expected to close on May 11, 2026, pending regulatory approvals. This move aligns with Spectrum Brands' previously announced plan to separate the HPC business from its other operations, effectively reducing the parent's collateral exposure and establishing a strategic partnership to drive long-term growth.