Altra Industrial Motion in market with add-on to 9% 2011 notes

By Paul Deckelman

New York, March 28 - Altra Industrial Motion Inc. began marketing its planned $105 million add-on to its 9% senior secured notes due 2011, high yield primary sources said Wednesday.

The Quincy, Mass.-based electromechanical power transmission products company began a roadshow that is slated to continue through this coming Monday.

The bonds will come to market under Rule 144A via bookrunner Jefferies & Co.

Altra Industrial Motion sold the original $165 million issue of the 9% notes in November 2004. Those existing bonds are rated B1 by Moody's Investors Service and CCC+ by Standard & Poor's.

The new bonds will have the same features, including an equity clawback provision for up to 35% of the bonds at 109 through Dec. 1, and a first call on Dec. 1, 2008 at 104.50, then subsequently at 102.25, and par. The first coupon payment on the new tranche of bonds will be on June 1.

The company plans to use the proceeds from the add-on offering, plus a $10 million draw on its revolving credit facility and $10.9 million of cash on hand, to fund its $106.2 million acquisition of TB Woods Corp.

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