Hamilton Beach to get new facility via Wachovia, UBS with spin-off

By Sara Rosenberg

New York, July 24 - Hamilton Beach Inc. plans to get a new credit facility linked to its spin-off from Nacco Industries Inc. and subsequent merger with Applica Inc., a company spokesperson told Prospect News on Monday.

Wachovia and UBS are the lead banks on the deal.

The facility will be comprised of an asset-based revolver and a second-lien term loan, with details on tranche sizes and timing unavailable at this time, the spokesperson said.

Proceeds from the credit facility will be used to finance ongoing operations and growth, to repay Applica's and Hamilton Beach/Proctor-Silex's existing debt and to pay a $110 million cash dividend to Nacco.

On a pro forma basis for the transaction, Hamilton Beach would have had debt of about $295 million as of March 31, including the dividend and payment of estimated transaction fees and expenses.

The transaction is hoped to be completed by the end of the third quarter, subject to obtaining required regulatory and Applica stockholder approvals.

Hamilton Beach is a Richmond, Va., small electric household appliance company.

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