Autokiniton plans $525 million credit facilities for Tower purchase

By Sara Rosenberg

New York, Aug. 15 – Autokiniton Global Group has received a commitment for $525 million of senior secured credit facilities to help fund its acquisition of Tower International Inc., according to a SC TO-T filed on Thursday with the Securities and Exchange Commission.

Goldman Sachs Bank USA, BofA Securities Inc., Barclays, RBC Capital Markets and KKR Capital Markets are the joint lead arrangers on the deal.

The facilities consist of a $125 million asset-based revolver due May 22, 2023 and a $400 million incremental term loan due May 22, 2025.

Based on the commitment letter, the term loan is expected to have 101 soft call protection for six months.

Other funds for the transaction will come from $267 million of 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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