Spectrum Brands Holdings Announces \$127 Million Strategic Investment in Home and Personal Care Business by Oaktree Capital Management

Key Highlights:

• Spectrum Brands Holdings, Inc. (“Spectrum Brands” or the “Company”) has entered into a definitive agreement for a strategic investment in its Home and Personal Care (“HPC”) division.
• Oaktree Capital Management L.P. (“Oaktree”) will invest an aggregate of \$127 million in cash into the HPC business, prior to transaction fees.
• The investment is structured as \$67 million in convertible preferred equity and \$60 million in a first lien term loan specific to the HPC business.
• Dividends on the preferred equity accrue at 8.0% per annum, compounded quarterly, while the term loan bears interest at either SOFR plus 6.0% or base rate plus 4.5% at the option of the HPC business.
• Upon closing, Oaktree will own approximately 27% of the equity in the HPC business, with the remainder held by a wholly-owned Spectrum Brands subsidiary.
• The transaction is expected to close on or about May 11, 2026, pending regulatory approvals.
• After closing, the HPC business will no longer be part of the collateral package for Spectrum Brands’ parent indebtedness, other than serving as collateral for the new term loan.

Article:

Spectrum Brands Holdings, Inc. (NYSE: SPB), a global consumer products company, announced a significant strategic transaction on May 1, 2026. The company, through its indirect subsidiaries, has agreed to accept a \$127 million investment from funds affiliated with Oaktree Capital Management L.P. in its Home and Personal Care (HPC) business.

This capital infusion consists of \$67 million in convertible preferred equity and \$60 million in a first lien term loan. The preferred equity will accrue dividends at an attractive rate of 8.0% per annum, compounded quarterly, offering Oaktree a compelling risk-reward profile relative to typical equity investments. The term loan portion will carry a floating interest rate, at the HPC business’s option, of either SOFR + 6.0% or the base rate + 4.5%, which reflects current market terms for private credit in the sector.

Importantly, neither Spectrum Brands nor Oaktree will be required to make additional capital contributions into the HPC business as part of this agreement, minimizing future funding risk for existing shareholders. Following the transaction, the HPC business will no longer be included as collateral for Spectrum Brands’ parent-level debt, except as collateral for the new HPC Term Loan. This means that, should there be any future credit events or restructurings at the parent level, the HPC business would be less directly impacted, which could result in a revaluation of both the parent and HPC business’s risk profiles by investors and creditors.

Upon closing, Oaktree will hold a 27% equity stake in the HPC business, with the remaining 73% retained by a wholly-owned subsidiary of Spectrum Brands. This structure sets up a new strategic partnership aimed at supporting the long-term growth of the HPC business. Spectrum Brands has previously announced its intention to separate the HPC business from its other divisions, and this transaction is a material step in that process, signaling progress to investors as well as a vote of confidence from a prominent institutional investor.

The transaction is expected to close on or about May 11, 2026, subject to the receipt of required regulatory approvals. Shareholders should note that the exact timing and final terms could be affected by regulatory review, and as with all such deals, there is some risk that the transaction may not close as anticipated.

Potential Share Price Impact and Shareholder Considerations

• This transaction is price-sensitive and could materially impact the share value of Spectrum Brands Holdings. The injection of capital, the strategic partnership, and the de-risking of the parent’s indebtedness structure could be viewed positively by the market.
• The removal of the HPC business from the parent collateral package may improve the credit profile and flexibility of Spectrum Brands, while also making a future spin-off, sale, or IPO of the HPC division more feasible.
• The involvement of Oaktree Capital, a well-known global investment manager, is a strong third-party validation of the value and potential of the HPC business.
• The structure of the deal, with both preferred equity and secured debt, provides Oaktree with downside protection while exposing Spectrum Brands shareholders to potential upside from future growth or monetization events in the HPC business.
• Shareholders should monitor for additional disclosures on the use of proceeds, potential impacts to consolidated financials, and any updates on the strategic separation of the HPC business.

Other Details:

• Common Stock, \$0.01 par value, is the listed security for Spectrum Brands Holdings, trading under the symbol SPB on the New York Stock Exchange (NYSE).
• The company is incorporated in Delaware, with its headquarters at 3001 Deming Way, Middleton, WI 53562.
• This Form 8-K was signed by Ehsan Zargar, Executive Vice President, General Counsel and Corporate Secretary.

Disclaimer: The information above is a summary of material events disclosed by Spectrum Brands Holdings, Inc. on Form 8-K as of May 1, 2026. This article is provided for informational purposes only and does not constitute investment advice. Investors should refer to official SEC filings and consult with a financial advisor before making investment decisions. All investments involve risk, including the potential loss of principal.

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