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Enodis announces £100 million deal, to price March 19
By Paul A. Harris
St. Louis, Mo., Feb. 20 - Enodis plc will price a £100 million offering of senior notes due 2012 on March 19, according to the company.
Underwriters are Credit Suisse First Boston and RBS.
"We announced a rights issue this morning," Enodis chief executive officer Andrew Allner told Prospect News on Wednesday.
"The next stage is to prepare the market for high yield, and that should happen in the next few weeks," Allner added, confirming that March 19 is the expected pricing date for the notes that are scheduled to begin roadshowing during the week of March 11.
Allner also said that the company's new 10-year notes will be non-callable for five years.
Proceeds, according to the Enodis CEO, will be used to repay senior bank debt.
"We're refinancing our existing debt," he said. "We've done a rights issue and what we're looking to do is get a proper financial capital structure going forward.
"We're profitable," Allner added. "We generate lots of cash, but we have a high level of debt from acquisitions carried out in the past. So what we're looking to do is to effectively syndicate the finance we have at the moment, from Royal Bank (of Scotland), and now CSFB, in the most effective way.
"And we think an element of high yield makes abundant sense for us, and makes sense for our overall capital structure."
Allner said that the company produces "heavy core equipment" - fryers, grills, dishwashers and other equipment found in commercial kitchens. Customers include quick serve restaurants, hotels, prisons and schools.
Enodis's Frymaster, a fryer found in quick-serve restaurants, is sold in over 100 countries, he added.
Last year Enodis did 75% of its business in North America, according to the CEO.
It has a technology center in Florida, which is now the company's global operations headquarters, Allner said, adding that the company released 20 new products in North America during 2001.
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