Harbinger Group Inc.
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SEC Filings

10-Q
HRG GROUP, INC. filed this Form 10-Q on 02/07/2017
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(9) Debt
The Company’s consolidated debt consists of the following:
 
 
December 31, 2016
 
September 30, 2016
 
 
 
 
Amount
 
Rate
 
Amount
 
Rate
 
Interest rate
HRG
 
 
 
 
 
 
 
 
 
 
7.875% Senior Secured Notes, due July 15, 2019
 
$
864.4

 
7.9
%
 
$
864.4

 
7.9
%
 
Fixed rate
7.75% Senior Unsecured Notes, due January 15, 2022
 
890.0

 
7.8
%
 
890.0

 
7.8
%
 
Fixed rate
Spectrum Brands
 
 
 
 
 
 
 
 
 
 
USD Term Loan, due June 23, 2022
 
1,003.0

 
3.4
%
 
1,005.5

 
3.6
%
 
Variable rate, see below
CAD Term Loan, due June 23, 2022
 
53.3

 
4.5
%
 
54.9

 
4.6
%
 
Variable rate, see below
Euro Term Loan, due June 23, 2022
 
58.8

 
3.5
%
 
63.0

 
3.5
%
 
Variable rate, see below
6.375% Notes, due November 15, 2020
 
—

 
—
%
 
129.7

 
6.4
%
 
Fixed rate
6.625% Notes, due November 15, 2022
 
570.0

 
6.6
%
 
570.0

 
6.6
%
 
Fixed rate
6.125% Notes, due December 15, 2024
 
248.0

 
6.1
%
 
250.0

 
6.1
%
 
Fixed rate
5.75% Notes, due July 15, 2025
 
1,000.0

 
5.8
%
 
1,000.0

 
5.8
%
 
Fixed rate
4.00% Notes, due October 1, 2026
 
445.8

 
4.0
%
 
477.0

 
4.0
%
 
Fixed rate
Revolver Facility, expiring June 23, 2020
 
165.5

 
5.6
%
 
—

 
—
%
 
Variable rate, see below
Other notes and obligations
 
26.9

 
7.7
%
 
16.8

 
9.8
%
 
Variable rate
Obligations under capitalized leases
 
140.9

 
5.3
%
 
114.7

 
5.5
%
 
Various
Salus
 
 
 
 
 
 
 
 
 
 
Unaffiliated long-term debt of consolidated variable-interest entity
 
37.0

 
—
%
 
39.7

 
—
%
 
Variable rate, see below
Long-term debt of consolidated variable-interest entity with FGL (a)
 
58.8

 
—
%
 
63.0

 
—
%
 
Variable rate, see below
Unaffiliated secured borrowings under non-qualifying loan participations
 
1.0

 
—
%
 
2.0

 
—
%
 
Fixed rate
Total
 
5,563.4

 
 
 
5,540.7

 
 
 
 
Original issuance discounts on debt, net of premiums
 
(22.2
)
 
 
 
(22.8
)
 
 
 
 
Unamortized debt issue costs
 
(82.2
)
 
 
 
(87.0
)
 
 
 
 
Total debt
 
5,459.0

 
 
 
5,430.9

 
 
 
 
Less current maturities and short-term debt
 
43.5

 
 
 
166.0

 
 
 
 
Non-current portion of debt
 
$
5,415.5

 
 
 
$
5,264.9

 
 
 
 
(a) The debt balances included in the accompanying Condensed Consolidated Balance Sheets and in the table above reflect transactions between the businesses held for sale and businesses held for use that are expected to continue to exist after the close of the FGL Merger. Such transactions are not eliminated in the accompanying Condensed Consolidated Financial Statements in order to appropriately reflect the continuing operations and balances held for sale.
HRG
On January 13, 2017, subsequent to the end of the fiscal quarter, the Company, through its wholly-owned subsidiaries, entered into the 2017 Loan, pursuant to which it may borrow up to an aggregate amount of $150.0. The 2017 Loan bears interest at an adjusted International Exchange London Interbank Offered Rate (“LIBOR”), plus 2.35% per annum, payable quarterly. The 2017 Loan matures on July 13, 2018, with an option for early termination by the borrower. The 2017 Loan is secured by approximately $508.0 worth of marketable securities owned by a subsidiary of HGI Funding. The Company incurred $1.1 of financing costs in connection with the 2017 Loan which have been capitalized as debt issuance costs and are being amortized through the scheduled maturity date of the loan. As of January 31, 2017, the Company had drawn $50.0 under the 2017 Loan. The 2017 Loan contains a customary mandatory prepayment clause, which requires the borrower to pay back any amounts borrowed under the 2017 Loan if certain events occur, including, but not limited to, a breach of the terms of the agreement by the borrower, a change of control of the borrower or the issuer of the pledged securities or a delisting of the pledged securities.  
Spectrum Brands
Interest terms
During three months ended December 31, 2016, Spectrum Brands amended the credit agreement under its term loans reducing the interest rate margins applicable to the U.S. dollar denominated term loan facility (the “USD Term Loan”). At December 31, 2016, Spectrum Brands’ variable interest rate terms were as follows: (i) the USD Term Loan is subject to either adjusted LIBOR, subject to a 0.75% floor, plus margin of 2.50% per annum, or base rate with a 1.75% floor plus margin of 1.50% per annum; (ii) the CAD denominated term loan facility (the “CAD Term Loan”) is subject to either Canadian Dollar Offered Rate, subject to a 0.75% floor plus 3.50% per annum, or base rate plus 2.50% per annum; (iii) the Euro denominated term loan facility (the “Euro

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