Manitowoc increases credit facility size to $2.675 billion for Enodis bid

By Sara Rosenberg

New York, May 22 - Manitowoc Co. Inc. detailed the changes to its credit facility commitment for the proposed acquisition of Enodis plc, including an increase in the overall size to $2.675 billion from $2.4 billion, according to an 8-K filed with the Securities and Exchange Commission Thursday.

Under the revised financing plan, the company's six-year term loan Y would now be sized at $1.075 billion, up from $800 million.

All other tranche sizes were left unchanged from the original commitment amounts so there's still a $400 million five-year revolver, a $900 million five-year term loan A and a $300 million 18-month term loan X.

Initial pricing on all loan tranches is expected at Libor plus 300 basis points.

JPMorgan, Deutsche Bank, Morgan Stanley and BNP Paribas are the joint lead arrangers and joint bookrunners on the deal, with JPMorgan the administrative agent, Deutsche and Morgan Stanley as syndication agents, and BNP the documentation agent.

The size of the credit facility was increased as a result of Manitowoc's recent decision to raise its purchase price offer for Enodis to trump a recent bid by Illinois Tool Works Inc.

Manitowoc is now offering to buy Enodis for a cash payment of 294 pence per share, and in advance of the closing of the transaction, Enodis intends to pay a dividend of 2 pence per share in lieu of an interim dividend in respect of the financial year ending Sept. 30.

In April, Manitowoc agreed to buy Enodis for 258 pence per share, but then in early May, Illinois Tool Works offered to buy the company for 280 pence in cash per share, plus the 2 pence per share dividend.

The acquisition is subject to certain closing conditions, including the approval of Enodis shareholders, regulatory approvals in various jurisdictions and other customary closing conditions for a U.K. scheme of arrangement.

Manitowoc is a Manitowoc, Wis.-based provider of lifting equipment for the construction industry, manufacturer of cold-side equipment for the foodservice industry, and provider of shipbuilding, ship repair and conversion services. Enodis is a Tampa, Fla.-based food and beverage equipment manufacturer.

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