United Technologies/Goodrich merger funding may include convertibles

By Angela McDaniels

Tacoma, Wash., Sept. 23 - United Technologies Corp. might issue convertible securities to help fund its purchase of Goodrich Corp.

The purchase price is expected to be financed with a combination of new debt, equity or equity-linked securities and cash on United Technologies' balance sheet, according to an 8-K filing with the Securities and Exchange Commission.

The equity component is expected to make up about 25% of the total.

United Technologies received a 12-month commitment from a group of lenders for a $15 billion 346-day bride loan facility.

The company agreed to purchase Goodrich for $127.50 per share in cash. This equates to a total enterprise value of $18.4 billion, including $1.9 billion of net debt that United Technologies will assume.

United Technologies is a Hartford, Conn.-based provider of high-technology products and services to the aerospace and building industries. Goodrich is a Charlotte, N.C.-based supplier of systems and services to aerospace, defense and homeland security markets.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.