UCI to sell $250 million notes to help fund acquisition by Rank Group

By Paul A. Harris

St. Louis, Jan. 4 - UCI International, Inc. plans to sell $250 million of eight-year senior notes (B2/CCC+), according to market sources.

Although timing and syndicate names were not announced on Tuesday, the Evansville, Ind.-based aftermarket vehicle parts supplier is concurrently in the market with a $525 million senior secured credit facility via Credit Suisse, HSBC and Nomura. The bank deal is set to launch on Thursday.

Proceeds will be used to help fund the acquisition of the company by Rank Group Ltd.

The cash price is $375 million, according to Rank, which will also assume about $605 million of UCI's net debt.

In addition to the bonds and bank loan, funding for the acquisition will come from an equity contribution of approximately $320 million and cash available on the balance sheet.

The acquisition is expected to close in the first quarter, subject to regulatory approvals.

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