Autokiniton plans new debt financing for Tower International purchase

By Sara Rosenberg

New York, July 16 – Autokiniton Global Group has received a commitment for debt financing to help fund its acquisition of Tower International Inc., according to an 8-K filed recently filed with the Securities and Exchange Commission.

Goldman Sachs Bank USA, BofA Securities Inc., Barclays, KKR Capital Markets LLC and RBC Capital Markets provided the commitment.

Other funds for the transaction will come from equity.

Under the agreement, Tower is being bought for $31.00 per share in cash. Including Tower’s debt and pension related liabilities, the total value of the transaction is about $900 million.

Closing is expected in September or October, subject to the tender of at least a majority of the outstanding shares of Tower common stock and the expiration or early termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Autokiniton, a portfolio company of KPS Capital Partners, is a New Boston, Mich.-based supplier of metal-formed components and complex assemblies to the automotive industry. Tower is a Livonia, Mich.-based manufacturer of engineered automotive structural metal components and assemblies.

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