RBC Bearings gets $2.8 billion bridge loan commitment for Dodge buy

By Sara Rosenberg

New York, July 26 – RBC Bearings Inc. has received a commitment for a $2.8 billion bridge loan to support its acquisition of the Dodge mechanical power transmission division of Asea Brown Boveri Ltd., according to an 8-K filed with the Securities and Exchange Commission on Monday.

Goldman Sachs Bank USA provided the bridge commitment.

The company currently intends to permanently finance the $2.9 billion acquisition with an appropriate mix of debt, equity and cash on hand.

Closing is expected in the fourth quarter, subject to customary conditions, including regulatory review.

Leverage is expected to be around 4x at closing, with the intention to bring leverage down to less than 3x by the end of fiscal year 2023 and to eliminate all debt within five years.

RBC Bearings is an Oxford, Conn.-based manufacturer of highly engineered precision bearings and components for the industrial, defense and aerospace industries. Dodge is a Greenville, S.C.-based manufacturer of mounted bearings and mechanical products.

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