SPX Flow to sell $600 million two-part senior notes offer on Thursday

By Paul A. Harris

Portland, Ore., Aug. 3 – SPX Flow, Inc. plans to price $600 million of senior notes (B1/BB) in two tranches on Thursday, according to a market source.

BofA Merrill Lynch is left lead bookrunner for both tranches of the Rule 144A and Regulation S deal.

The offering includes eight-year notes, which come with three years of call protection, in the market with early guidance in the 5¾% area. HSBC Securities, Scotia Capital and Deutsche Bank Securities Inc. are the joint bookrunners for the eight-year notes. Credit Agricole CIB and BBVA are the senior co-managers. J.P. Morgan Securities LLC and Commerzbank are the co-managers.

SPX Flow is also offering 10-year notes, which come with five years of call protection, with early guidance in the 6% area. JPMorgan, SunTrust Robinson Humphrey Inc. and MUFG are the joint bookrunners for the 10-year tranche. Commerzbank and SMBC Nikko are the senior co-managers. HSBC and Deutsche Bank are the co-managers.

Tranche sizes remain to be determined.

The Charlotte, N.C.-based supplier of highly engineered flow components plans to use the proceeds, together with borrowings under its domestic revolver, to repurchase and/or redeem and retire the $600 million of outstanding 6 7/8% senior notes due 2017 via the concurrently announced tender offer.

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