Related Party Transactions

6 Months Ended

Mar. 31, 2018

Related Party Transactions [Abstract]

Related Party Transactions

On October 16, 2017, the Company entered into an engagement letter with Jefferies LLC (“Jefferies”), a wholly owned subsidiary of Leucadia National Corporation (“Leucadia”) a significant stockholder of HRG. Pursuant to the Jefferies engagement letter (as amended, the “Jefferies Engagement Letter”), Jefferies agreed to act as co-advisor to the Company (with the other co-advisors acting as lead financial advisor to the Company) with respect to the Company’s review of strategic alternatives. Under the Jefferies Engagement Letter, Jefferies is entitled to receive up to a $3.0 transaction fee, which may be increased by another $1.0 at the sole discretion of the Company, and reimbursement for all reasonable out of pocket expenses incurred by Jefferies in connection therewith. In addition, the Company has agreed to indemnify Jefferies for certain liabilities in connection with such engagement.

As previously disclosed, on February 24, 2018, in connection with the Merger with Spectrum Brands, HRG entered into Voting Agreements with Spectrum Brands, our majority-owned subsidiary, CF Turul LLC and Leucadia, each of which is a significant stockholder of ours. The Voting Agreements require HRG, CF Turul LLC and Leucadia to vote in favor of the Merger, subject to certain terms and conditions. In addition, on such date, HRG entered into a Shareholder Agreement with Leucadia, which addresses certain rights that Leucadia will have following the completion of the Merger.