Gates Global sets talk for $2.49 billion, €200 million term loans

By Paul A. Harris

Portland, Ore., June 5 – Gates Global LLC set price talk for $2.49 billion and €200 million of seven-year first-lien covenant-light term loans on Thursday, according to a market source.

Both tranches are talked with Libor spreads of 375 to 400 basis points and original issue discounts of 99.

Both pieces feature 1% Libor floors and 101 soft call protection for 12 months.

Credit ratings remain to be determined.

Commitments are due on June 19.

Credit Suisse Securities (USA) LLC is the lead.

Proceeds will be used to help fund the buyout of the company by Blackstone from Onex Corp. and Canada Pension Plan Investment Board.

The credit facility also includes a $125 million five-year revolver and $325 million ABL.

Gates Global is a Denver-based manufacturer of power transmission belts and fluid power products.

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