TRLPC: Blackstone to back Gates buy with roughly $4.2B in debt
NEW YORK (Reuters) - Credit Suisse, Citibank, Goldman Sachs, Morgan Stanley, Deutsche Bank and UBS are leading the roughly $4.2 billion financing that will back Blackstone Group LP's (BX.N) acquisition of Gates Global Inc, sources told Thomson Reuters LPC.
The financing will be split between loans and bonds.
Leverage through the bank debt is anticipated at 5.0 times.
he leverage through the bonds is expected at 7.0 times, which suggests a split of 70 percent bank debt and 30 percent bonds.
The bank debt portion of the financing will include a revolver, a term loan B and a bridge loan.
The bridge loan is expected to be replaced with high yield notes.
Blackstone agreed on April 4 to purchase industrial products maker Gates from affiliates of Onex Corporation (OCX.TO) and Canada Pension Plan Investment Board for $5.4 billion.
Blackstone will purchase all equity interests of Pinafore Holdings B.V., the parent company of Gates Corporation.
Denver-based Gates is a manufacturer of power transmission belts and fluid power products. The company was founded in 1911.
(Editing By Jon Methven)