Timken plans to price senior notes through three bookrunners

By William Gullotti

Buffalo, N.Y., March 22 – Timken Co. is expected to sell dollar-denominated senior notes (Baa2//BBB-), according to a 424B5 filing with the Securities and Exchange Commission.

The fixed-rate notes feature a make-whole call and then a par call. There also is a change-of-control redemption at 101%.

The joint bookrunning managers for the offering are BofA Securities, Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC.

U.S. Bank Trust Co., NA is the trustee.

Counsel for the issuer is Jones Day. Cleary Gottlieb Steen & Hamilton LLP is counsel for the underwriters.

Proceeds will be used to repay borrowings under the company’s senior credit facility and accounts receivable facility with any remaining proceeds for general corporate purposes.

As of March 21, approximately $149 million remained outstanding under the senior credit facility, bearing variable interest at a current weighted average of 1.42% per annum. The facility matures June 25, 2024.

As of the same date, approximately $100 million remained outstanding under the accounts receivable facility, bearing variable interest at a current weighted average of 1.23% per annum. The facility matures Nov. 30, 2024.

Timken is a Canton, Ohio-based mechanical components engineering, manufacturer and marketing company.

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