Gates Global to price $568 million six-year notes on Wednesday; initial talk low 6% area

By Paul A. Harris

Portland, Ore., Nov. 20 – Gates Global LLC and Gates Global Co. plan to price a $568 million offering of six-year senior notes (expected ratings Caa1/B) in a quick-to-market Wednesday trade following a late-morning conference call with investors, according to market sources.

Initial talk has the deal coming to yield in the low 6% area.

Citigroup Global Markets Inc. is the lead bookrunner. Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, UBS Securities LLC, Barclays, Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and RBC Capital Markets LLC are the joint bookrunners. Blackstone is the co-manager.

The Rule 144A and Regulation S for life notes, which will mature in January 2026, become callable after two years at par plus 50% of the coupon.

The Denver-based manufacturer of power transmission belts and fluid power products plans to use the proceeds to refinance $568 million of its senior notes maturing in 2022.

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