Gates to launch add-on term loan, amendment and extension on Friday

By Sara Rosenberg

New York, March 16 – Gates Global LLC is scheduled to hold a lender call at 10 a.m. ET on Friday to launch a $300 million-equivalent add-on first-lien U.S. and euro term loan B due March 2024, according to a market source.

In addition, the company will launch an amendment and extension of its $1,949,000,000 term loan B and €193 million term loan B to March 2024, which is an extension of two years and eight months, the source said.

The term debt is getting 101 soft call protection for six months.

Credit Suisse, Citigroup, Macquarie and Morgan Stanley are the bookrunners on the deal, with Credit Suisse the administrative agent.

Commitments are due at noon ET on March 29, the source added.

Proceeds from the add-on loan will be used to partially repay the existing first-lien term loan.

The company also intends to use proceeds from a $150 million add-on 6% senior unsecured notes offering to pay down U.S. term loan B debt due 2021.

As of Dec. 31, the U.S. term loan B totaled $2,398,700,000.

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

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