Allied Motion secures commitment for $35 million mezzanine financing

By Lisa Kerner

Charlotte, N.C., Aug. 28 - Allied Motion Technologies Inc. received a mezzanine commitment letter from Prudential Capital Partners IV, LP to purchase up to $35 million of senior subordinated notes.

Interest on the notes will be 14.5% with 13% payable in cash and 1.5% payable in kind, quarterly in arrears.

Allied may prepay the notes at any time after the third anniversary of closing, in whole or in part, at par plus accrued interest.

Prudential's commitment letter requires Allied Motion to have, among other things, simultaneously acquired Globe Motors, Inc. and obtained not less than $50 million or more than $60 million of senior term debt financing and a $15 million revolving credit facility.

The debt financing will help fund Allied Motion's purchase of all the outstanding equity interests of Globe Motors from Safran USA, Inc. for about $90 million.

The debt financing will also be used to refinance Allied Motion's existing debt, for working capital and for general corporate purposes.

Based in Amherst, N.Y., Allied Motion designs, manufactures and sells motion control products.

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