Gates Global starts roadshow for $1.37 billion dual-currency eight-year notes offering

By Paul A. Harris

Portland, Ore., June 9 – Gates Global LLC and Gates Global Co. began a roadshow on Monday in New York for a $1,365,000,000 equivalent offering of eight-year senior notes (Caa2/B), according to a syndicate source.

The deal is coming in a $1.04 billion dollar-denominated tranche and a $325 million equivalent euro-denominated tranche.

The roadshow continues Tuesday in New York and New Jersey, then moves to Boston on Wednesday and to Los Angeles and San Francisco on Thursday.

The Rule 144A and Regulation S for life deal is set to price late this week.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc., UBS Investment Bank and Macquarie Capital are the joint bookrunners. Blackstone is the co-manager.

The notes become callable after three years at par plus 50% of the coupon and feature a three-year 40% equity clawback and a 101% poison put.

Proceeds will be used to partially fund Blackstone’s acquisition of Pinafore Holdings BV, the parent company of Gates Corp., a Denver-based manufacturer of power transmission belts and fluid power products.

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