Hussmann to get $200 million term loan with buyout of majority stake

By Sara Rosenberg

New York, Aug. 8 - Hussmann International Inc. plans on getting a new $200 million secured term loan to help fund its acquisition by Clayton, Dubilier & Rice LLC, according to an 8-K filed with the Securities and Exchange Commission on Monday.

GE Capital Markets, ING Capital LLC, Rabobank, BMO Capital Markets Corp., RBC Capital Markets LLC and Natixis are the lead banks on the deal.

Under the agreement, Clayton, Dubilier & Rice is buying a 60% ownership stake in Hussmann from Ingersoll-Rand plc, which will retain the remaining 40% equity interest.

The transaction is valued at $370 million in cash and common stock, including the investment of $195 million of equity by Clayton, Dubilier & Rice for Hussmann's convertible participating preferred stock.

Closing is expected near the end of the third quarter, subject to the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and certain foreign antitrust clearance, and completion of certain restructuring transactions involving Hussmann.

Hussmann is a Bridgeton, Mo.-based manufacturer, seller, installer and servicer of refrigerated display merchandising equipment and refrigeration systems.

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