Thomas Lee Closes $620M United Recap –

Thomas H. Lee Co. last month closed a $620 million leveraged recapitalization of St. Louis-based United Industries Corp.

Structured with a 60-40 debt-to-equity ratio, the deal leaves Thomas H. Lee Co. controlling more than 90% of the company, said Scott Schoen, a managing director at the Boston-based firm.

The transaction was leveraged with two debt pieces, Mr. Schoen said. BankAmerica and Morgan Stanley Dean Witter co-led a bank loan that was co-managed by CIBC Oppenheimer. The second debt tranche was a bridge security purchased by BankAmerica and CIBC that will be taken out via a high-yield offering that Mr. Schoen said should be held in the next two months and will be managed by the owners of the bridge security.

United Industries is a developer of household insecticides, insect repellents, water-soluble fertilizers and consumer-oriented lawn and garden supplies. The company markets its own brands through its Spectrum division and manages house brands for retailers Home Depot, Kmart and Loews, Mr. Schoen said.

Mr. Schoen cited the growth throughout the industry as well as United’s strong positioning with major retailers as buttresses for his firm’s investment in the company.