Spectrum Brands Inc. (SPB), a Madison, Wis.-based consumer products company, intends to offer $500 million in senior debt as part of the planned acquisition of Russell Hobbs Inc. later this month.

As part of its acquisition of Russell Hobbs, the combined companies intend to refinance a portion of Spectrum Brands' existing senior debt and a portion of Russell Hobbs' existing debt through a combination of a $1 billion new term loan, the $500 million debt offering announced Tuesday, and a new $300 million asset-based revolving loan.

The $500 million in new notes will be offered and sold to qualified institutional buyers in the U.S.

Spectrum makes batteries, shaving and grooming products, lawn and garden equipment, pest control products and pet supplies. Hobbs makes consumer products under the Black & Decker and George Forman brands.