Columbus McKinnon $136 million note issue to mature in eight years; roadshow starts Wednesday

By Paul A. Harris

St. Louis, Aug. 8 - Columbus McKinnon Corp. plans to sell about $136 million of senior subordinated notes that will mature in 2013 and will come with four years of call protection, according to a market source.

Plans to issue Rule 144A debt were disclosed last Friday in a news release from the company. Karen L. Howard, vice president and interim chief financial officer of Columbus McKinnon, told Prospect News on Friday that the company had been contemplating a tenor of seven, eight or 10 years.

Credit Suisse First Boston has the books.

A roadshow will begin on Wednesday, with pricing expected to take place late in the week of Aug. 15.

Proceeds, together with cash on hand and a possible draw on the Columbus McKinnon's revolving credit facility, will be used to fund the tender for the company's $142.4 million 8½% senior subordinated notes due 2008.

Moody's Investors Service assigns its Caa1 rating to the notes. Standard & Poor's, meanwhile, assigns its CCC+ rating.

Columbus McKinnon is an Amherst, N.Y., designer, manufacturer and marketer of hoists, cranes, chains and forged attachments.

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