Columbus McKinnon plans $710 million credit facilities for Dorner buy

By Sara Rosenberg

New York, March 1 – Columbus McKinnon Corp. has received a commitment for up to $710 million of credit facilities to help fund the $485 million acquisition of Dorner Manufacturing Corp. from EQT and to refinance an existing term loan B, according to a company presentation.

J.P. Morgan Securities LLC provided the debt commitment.

The facilities consist of a $60 million revolver and an up to $650 million first-lien term loan.

Other funds for the transaction will come from about $120 million of existing cash.

The company plans to issue about $150 million of equity to de-lever post close and is targeting net leverage of 3.75x to 4.0x pro forma for the equity offering.

“We have consistently demonstrated our ability to quickly de-lever our balance sheet following acquisitions. We believe that our strong cash generation supplemented with Dorner’s financial performance supports our funding plan. The initial financing structure provides flexibility for timely execution of the transaction. We expect to put in place a permanent financing structure after closing with new debt and equity which provides a permanent capital structure that is flexible and low cost,” said Gregory P. Rustowicz, chief financial officer, in a news release.

Closing is anticipated early in the company’s first quarter of fiscal 2022, subject to usual closing conditions and regulatory requirements.

Columbus McKinnon is a Getzville, N.Y.-based designer, manufacturer and marketer of intelligent motion solutions, products, technologies and services for material handling. Dorner Manufacturing is a Hartland, Wis.-based automation solutions company.

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