Copeland to launch up to $2.75 billion term loan B on Tuesday

By Sara Rosenberg

New York, April 24 – Copeland is scheduled to hold a lender call at 10 a.m. ET on Tuesday to launch an up to $2.75 billion term loan B, according to a market source.

RBC Capital Markets and Barclays are the leads on the deal.

Proceeds will be used with other secured debt to help fund the acquisition by Blackstone of a majority stake in Emerson Electric Co.’s Climate Technologies business (Copeland) for an aggregate purchase price of $14 billion.

Under the agreement, Emerson will receive upfront, pre-tax cash proceeds of about $9.5 billion and a note of $2.25 billion at close, and retain 45% common equity ownership in the new stand-alone joint venture.

In the October press release, it was said that the cash consideration would be funded by $5.5 billion of fully committed debt financing ($6.2 billion inclusive of an unfunded ABL facility) and $4.4 billion of equity contribution from Blackstone. Abu Dhabi Investment Authority and GIC will invest alongside Blackstone as part of the transaction.

The release also said that the ABL revolver and term loan A portion of the debt financing was being led by RBC, Wells Fargo and SMBC.

Closing is expected in the first half of this year, subject to regulatory approvals and customary conditions.

Copeland is a manufacturer of mission critical, highly engineered heating, ventilation, air conditioning and refrigeration components.

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