Company also plans £1.53 million acquisition of Charter International
By Devika Patel
Knoxville, Tenn., Sept. 15 - Colfax Corp. negotiated a $680 million private placement of its series A perpetual convertible preferred stock and common stock on Sept. 12, according to an 8-K filed Thursday with the Securities and Exchange Commission.
The company will sell 14,756,945 common shares at $23.04 per share and 13,877,551 preferreds at $24.50 per preferred. The price per common share is identical to the Sept. 9 closing share price of $23.04. The price per preferred is a 6.34% premium to that price.
After three years, the 6% preferreds are convertible into common stock at a conversion rate determined by dividing the liquidation preference by 114% of the liquidation preference.
The investors will be BDT CF Acquisition Vehicle, LLC, BDT Capital Partners Fund I, LP, BDT Capital Partners Fund I-A, LP, Mitchell P. Rales and Steven M. Rales.
The company also reported that it has reached an agreement to acquire all of Charter International plc's share capital for cash and company shares. In the acquisition, Charter shareholders will receive 730p in cash and 0.1241 Colfax common shares in exchange for each Charter ordinary share. The acquisition values Charter's share capital at about £1.53 million, or 910p per Charter share.
Colfax is a Richmond, Va.-based industrial pump manufacturing company.
| Issuer: | Colfax Corp.
|
| Issue: | Series A perpetual convertible preferred stock, common shares
|
| Amount: | $680 million
|
| Warrants: | No
|
| Investors: | BDT CF Acquisition Vehicle, LLC, BDT Capital Partners Fund I, LP, BDT Capital Partners Fund I-A, LP, Mitchell P. Rales and Steven M. Rales
|
| Pricing date: | Sept. 12
|
| Stock symbol: | NYSE: CFX
|
| Stock price: | $21.06 at close Sept. 12
|
| Market capitalization: | $964.2 million
|
|
|
| Common stock
|
| Amount: | $340 million
|
| Shares: | 14,756,945
|
| Price: | $23.04
|
|
|
| Preferreds
|
| Amount: | $340 million
|
| Shares: | 13,877,551
|
| Price: | $24.50
|
| Dividends: | 6%
|
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