| NEW YORK
NEW YORK Nov 8 Goldman Sachs and Barclays are
in market with a $1.475 billion credit facility that will back
Bain Capital's acquisition of Apex Tool Group, sources told
Thomson Reuters LPC.
The facility comprises a $175 million revolver, an $835
million term loan B and a $450 million bridge-to-bonds. Goldman
Sachs is leading the bridge loan, while Barclays is leading the
revolver and TLB.
Barclays declined to comment. Goldman Sachs did not return
calls by press time. Apex referred calls to parents Danaher and
Cooper. Danaher, Cooper and Bain did not return calls by press
The bridge loan launched November 7 via a conference call to
bank lenders. The company is expected to tap the market with the
revolver and term loan in the second week of December but timing
may change since the syndication strategy is ongoing.
As previously reported, in October Danaher Corp and
Cooper Industries [COOPI.UL} said they were planning to sell
Apex, their hand and power tools joint venture, to Bain Capital
joining a growing group of U.S. conglomerates divesting non-core
The deal underscored the robust appetite of private equity
firms, backed by cheap financing, for assets sold by companies
or other buyout firms.
Danaher said it would receive about $650 million in net
proceeds from the sale.
Barclays was lead adviser to Bain on the transaction, and
provided committed financing along with Goldman Sachs, Morgan
Stanley, RBC, Citigroup and Deutsche Bank. Goldman Sachs was
Apex's exclusive financial adviser.
Danaher and Cooper each own 50 percent of Apex, which makes
Crescent wrenches, Lufkin measuring tapes and hand tools for
Sears Holdings Corp's Craftsman brand.
In its quest for Apex, Bain, the private equity firm
co-founded by U.S. presidential candidate Mitt Romney, prevailed
over other buyout firms like Platinum Equity LLC and American
Securities LLC in an auction.