RBC Bearings works with lenders for $1.8 billion acquisition facility

Chicago, Oct. 7 – RBC Bearings Inc. announced that it is working with lenders for a $1.8 billion credit agreement 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 Thursday.

The facility is expected to consist of up to $1.3 billion in a term loan and up to $500 million in a revolver.

Other financing for the transaction is coming from $500 million of 4 3/8% notes that were recently sold in the Rule 144A and Regulation S market, 3.45 shares of common stock in a secondary offering and a late September sale of 4.6 million shares of 5% series A mandatory convertible preferred stock for $100 per share.

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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