In February of last year we reported that Spectrum Brands, the parent company of aquarium stalwarts Tetra and Marineland, had filed for Chapter 11 Bankruptcy in order to restructure over 2.5 billion in debt. Since emerging from bankruptcy, Spectrum has rebounded and is back trading on the NYSE (SPB). It has recently been seen as [...]
In February of last year we reported that Spectrum Brands, the parent company of aquarium stalwarts Tetra and Marineland, had filed for Chapter 11 Bankruptcy in order to restructure over 2.5 billion in debt. Since emerging from bankruptcy, Spectrum has rebounded and is back trading on the NYSE (SPB). It has recently been seen as a major play on Wall Street (up 4% alone yesterday) and attracting the attention of many hedge funds, including D.E. Shaw and long time investor, Philip Falcone’s Harbinger Capital. Putting Falcone aside, the real news here is Spectrum Brands has rebounded from Chapter 11 and looks to be in a much better financial place.
Harbinger recently filed an amended 13-D (an SEC required ownership disclosure) revealing an activist stock stake of over 12 million shares (split between two affiliated legal entities) or 40% of the restructured company. Harbinger also has an additional active trading plan agreement with Credit Suisse that will allow them to purchase up to 100,000 shares a week at a price not to exceed $31.50. [Hat tip to Market Folley for confirming this news]. Laslty, based on a Form 4 filed with the SEC, Falcone has picked up nearly 90,000 more shares from D.E. Shaw. So yes, Mr. Falcone is quite bullish on Spectrum and has no qualms letting every desk know.
What does this mean for the aquarium industry? Next to nothing at this point, although if the market (read: Falcone) is half way right on this play and the value of SPB, it could mean improved R&D monies going towards Spectrum’s successful product groups–such as their pet arena; admitted wishful thinking by aquarists like myself. It may just be the Philip Falcone, ranked the 296th richest man in the world by Forbes in ’09, just likes animals. After all, the former hockey player does own a pet pig.
Philip, if you need a beautiful reef in that Greenwich castle of yours, give us a ring. All that stress from the planned nationwide 4g network could easily be eliminated with a Peppermint Angelfish… or two. Think about it.
