Parker-Hannifin pays down bridge facility by £1.9 billion

By Rebecca Melvin

Concord, N.H., Oct. 27 – Parker-Hannifin Corp. reduced its bridge credit facility on Wednesday to £3.2 billion from £5.1 billion, using cash raised from backstopped debt facilities available to Parker, according to a company update on debt financing arrangements on Wednesday.

In addition, Citibank NA and Citicorp North America Inc., original lenders under the bride facility agreement, have completed the syndication of their commitments.

The proceeds of loans drawn under the bridge facility and the cash raised is being used to finance any amount payable in connection with the acquisition of all outstanding capital stock of Meggitt plc, which is part of a court-sanctioned arrangement scheme under the Companies Act.

Parker-Hannifin entered a $2 billion senior unsecured term loan facility on Aug. 27 with KeyBank NA as administrative agent as outlined by the plan.

As previously reported, the credit agreement provides for a senior unsecured delayed-draw term loan to be used solely to finance a portion of the consideration in Parker-Hannifin’s acquisition of Meggitt.

The term loan was aimed at reducing the commitments made by lenders under the company’s bridge credit facility.

Citi, as financial adviser to Parker, is satisfied that sufficient resources are available to Parker to satisfy in full the consideration payable to scheme shareholders under the terms of the acquisition.

Parker-Hannifin is a Cleveland-based manufacturer of motion and control technologies.

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