Columbus McKinnon to launch $445 million first-lien loan on Monday

By Sara Rosenberg

New York, Jan. 6 – Columbus McKinnon Corp. is scheduled to hold a bank meeting at 10:30 a.m. ET on Monday to launch a $445 million seven-year first-lien term loan, according to a market source.

J.P. Morgan Securities LLC is the lead arranger and bookrunner on the deal.

Proceeds will be used to help fund the acquisition of Stahl CraneSystems from Konecranes plc for €224 million with an earn-out potential of up to €230 million if certain earnings goals are met for calendar year 2016, and to refinance existing bank debt.

Columbus McKinnon will also enter into a $75 million five-year revolving credit facility.

Both parts of the loan are rated B+ by S&P Global Ratings.

Originally, the company had received a commitment for a $395 million seven-year covenant-light first-lien term loan B and a $100 million eight-year covenant-light second-lien term loan for the acquisition.

However, the company was able to reduce the amount of debt needed for the transaction and switch to an all first-lien deal as a result of an agreement entered into in December to sell 2,273,000 shares of common stock in a private placement, with plans to use the expected gross proceeds of $50 million for the acquisition.

Closing is anticipated on or about Jan. 31 as all conditions to the acquisition have already been met.

Columbus McKinnon is a Getzville, N.Y.-based designer, manufacturer and marketer of material handling products, technologies and services. Stahl is a Germany-based manufacturer of explosion-protected hoists and crane components.

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