Schrader readies launch of $365 million credit facility for Tuesday

By Sara Rosenberg

New York, April 5 - Schrader is scheduled to hold a bank meeting at 10 a.m. ET on Tuesday to launch a proposed $365 million credit facility, according to a market source.

Barclays Capital Inc., Goldman Sachs & Co. and Citigroup Global Markets Inc. are the lead banks on the deal, with Barclays the left lead.

The facility consists of a $35 million revolver, a $230 million first-lien term loan and a $100 million second-lien term loan, the source said.

Leverage is roughly 3.1 times through the first lien and 4.4 times total.

Proceeds, along with equity, will be used to fund the buyout of the company by Madison Dearborn Partners LLC from Tomkins for $505 million in cash plus a small minority equity interest in the parent of the purchasing company.

Tomkins will use funds from the sale primarily to repay existing debt.

Closing is expected in the second quarter, subject to customary conditions.

For fiscal year 2011, Schrader had revenue of about $451 million and adjusted EBITDA of around $76 million.

Schrader is a manufacturer of tire pressure monitoring systems, valve products and tire hardware and related accessories for both original equipment manufacturers and aftermarket customers.

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