Actuant in-market $250 million term loan talked at Libor plus 175 basis points

By Sara Rosenberg

New York, Dec. 8 - Actuant Corp.'s in-market $250 million senior term loan that will be used to help fund the acquisition of Key Components Inc. is being talked at Libor plus 175 basis points, according to a market source.

J.P. Morgan Securities Inc. and Wachovia Securities are arranging the acquisition bank financing.

The company also is seeking recommitments from lenders for its $250 million revolver that was obtained in February. The revolver is priced with an interest rate of Libor plus 200 basis points, the source said.

Under the acquisition agreement, Actuant will purchase Key Components from an investor group led by Kelso & Co. for about $315 million, including the assumption of about $80 million of 10.5% bonds. The transaction is expected to close before year-end.

In addition to the new bank debt, Actuant plans on issuing about $125 million of its class A common stock through a public offering, the proceeds of which would be used to fully retire the Key Components senior notes and reduce senior borrowings. But, the equity offering is not needed to successfully close on the acquisition.

Actuant is a Milwaukee-based diversified industrial company. Key Components is a Tarrytown, N.Y.-based manufacturer of custom engineered products for a diverse array of end-user markets.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.