Autokiniton to launch $525 million credit facilities on Monday

By Sara Rosenberg

New York, Sept. 4 – Autokiniton Global Group will hold a bank meeting at noon ET on Monday in New York to launch its $525 million of senior secured credit facilities, according to a market source.

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 incremental ABL revolver and a $400 million incremental first-lien term loan.

Proceeds will be used to help fund the acquisition of Tower International Inc. 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.

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

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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