Gates Industrial to redeem euro-, dollar-denominated notes via shares

By Tali Rackner

Minneapolis, Dec. 28 – Gates Industrial Corp. plc plans to redeem all €235 million ($276.5 million equivalent) principal amount of its euro notes using the proceeds from a new ordinary share offering, according to an 8-K filing with the Securities and Exchange Commission.

Proceeds will also be used to redeem the company’s dollar-denominated notes and its £50,000 redeemable preferred shares issued in connection with the pre-IPO reorganization transactions.

The remainder, if any, will be used for general corporate purposes, which may include the repayment of other outstanding debt.

The euro notes and dollar notes mature on July 15, 2022 and have interest rates of 5¾% per annum and 6% per annum, respectively.

Denver-based Gates manufactures industrial and automotive belts and hoses.

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