Goodman Global to repay bank debt, redeem notes with part of IPO proceeds

New York, Feb. 6 - Goodman Global, Inc. said it intends to repay part of its term loan and redeem some of its notes using part of the proceeds of a planned initial public offering of common stock.

The company registered to sell up to $460 million of shares in an S-1 filing with the Securities and Exchange Commission.

JPMorgan will be bookrunner for the stock sale, with Merrill Lynch & Co., UBS Investment Bank and Goldman, Sachs & Co. also in the syndicate.

The Houston-based manufacturer of heating, ventilation and air conditioning products for residential and light commercial use did not specify the net proceeds it expects from the IPO nor did it give details on how the money would be divided between the various uses.

However, it said that proceeds will be used to redeem all its outstanding series A preferred stock - of which it had $225.57 million outstanding as of Sept. 30 - to repay part of the term loan and to redeem some of its fixed- and floating-rate notes. Goodman Global currently has $347.38 million of term loan debt outstanding, $250 million of floating-rate notes due 2012 with interest at Libor plus 300 basis points and $400 million of 7 7/8% senior subordinated notes due 2012

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