Manitowoc to repay some debt for Enodis purchase with asset sale proceeds

By Sara Rosenberg

New York, Aug. 4 - Manitowoc Co. Inc. plans to pay down debt that it is incurring for the pending acquisition of Enodis plc using proceeds from the sale of its Marine segment, according to a news release.

The Marine segment, which is a full-service shipbuilding, ship repair and ship conversion organization, is being sold to Fincantieri Marine Group Holdings Inc. and Lockheed Martin Corp. in a transaction valued at $120 million.

Remaining proceeds from the sale will be used for general corporate purposes.

The transaction is expected to close at the end of the year, subject to customary clearances including U.S. antitrust and certain U.S. security agencies.

The debt that Manitowoc is getting for the Enodis acquisition includes a $2.925 billion credit facility (Ba2/BB+), consisting of a $1.325 billion six-year term loan B talked at Libor plus 350 basis points with a 3% Libor floor and an original issue discount of 98, a $400 million five-year revolver talked at Libor plus 325 bps, a $900 million five-year term loan A talked at Libor plus 325 bps and a $300 million 18-month term loan X talked at Libor plus 325 bps.

Manitowoc is a Manitowoc, Wis.-based provider of lifting equipment for the construction industry, manufacturer of cold-side equipment for the foodservice industry, and provider of shipbuilding, ship repair and conversion services.

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