By Lisa Kerner
Charlotte, N.C., July 20 - Regal Beloit Corp. provided additional details of its recently announced planned $500 million private placement of senior notes on Tuesday in a form 8-K filing with the Securities and Exchange Commission.
On July 14, Regal Beloit placed the following:
• $75 million of series 2011A 4.99% senior notes, tranche A, due July 14, 2021;
• $75 million of series 2011A 5.09% senior notes, tranche B, due July 14, 2023;
• $84 million of series 2011A 4.09% senior notes, tranche C, due July 14, 2018;
• $94 million of series 2011A 4.77% senior notes, tranche D, due July 14, 2021; and
• $95 million of series 2011A 4.87% senior notes, tranche E, due July 14, 2023.
The company said it plans to place "in the near term" the following:
• $16 million of series 2011A 4.09% senior notes, tranche F, due July 14, 2018; and
• $61 million of series 2011A 4.77% senior notes, tranche G, due July 14, 2021
Proceeds will be used to finance the pending acquisition of Electrical Products Co. from A.O. Smith Corp.
Purchasers include Metropolitan Life Insurance Co., Union Fidelity Life Insurance Co., First Sun America Life Insurance Co., Western National Life Insurance Co., Hartford Life Insurance Co., New York Life Insurance Co., Connecticut General Life Insurance Co., Cigna Life Insurance Co. of North America, Northwestern Mutual Life Insurance Co., Gibraltar Life Insurance Co., Ltd., Physicians Mutual Insurance Co., United of Omaha Life Insurance Co., Guardian Life Insurance Co. of America, Berkshire Life Insurance Co.; of America, Genworth Life Insurance Co., Allstate Life Insurance Co. of New York, Woodmen of the World Life Insurance Society, Life Insurance Co. of the Southwest, Southern Farm Bureau Life Insurance Co., Ameritas Life Insurance Corp., State of Wisconsin Investment Board, and Assurity Life Insurance Co.
Regal Beloit may prepay the notes in whole or in part at any time in an amount not less than 10% of the original total principal amount plus interest and a make-whole amount.
The notes have a make-whole call at Treasuries plus 50 basis points.
Under the note purchase agreement, Regal Beloit must not allow its consolidated debt to consolidated EBITDA ration to exceed 3.75 to 1 unless under specified circumstances. The company must also maintain a consolidated EBITDA to consolidated interest expense ratio of more than 2.50 to 1, the filing said.
The notes will rank pari passu in right of payment with all other senior unsecured debt.
Regal Beloit manufactures electric motors, mechanical and electrical motion controls and power generation products and is based in Beloit, Wis.
| Issuer: | Regal Beloit Corp.
|
| Issue: | Series 2011A senior notes
|
| Amount: | $500 million
|
| Announcement date: | July 14
|
| Distribution: | Private placement
|
| Purchasers: | Metropolitan Life Insurance Co., Union Fidelity Life Insurance Co., First Sun America Life Insurance Co., Western National Life Insurance Co., Hartford Life Insurance Co., New York Life Insurance Co., Connecticut General Life Insurance Co., Cigna Life Insurance Co. of North America, Northwestern Mutual Life Insurance Co., Gibraltar Life Insurance Co., Ltd., Physicians Mutual Insurance Co., United of Omaha Life Insurance Co., Guardian Life Insurance Co. of America, Berkshire Life Insurance Co.; of America, Genworth Life Insurance Co., Allstate Life Insurance Co. of New York, Woodmen of the World Life Insurance Society, Life Insurance Co. of the Southwest, Southern Farm Bureau Life Insurance Co., Ameritas Life Insurance Corp., State of Wisconsin Investment Board, Assurity Life Insurance Co.
|
|
|
| Tranche A
|
| Amount: | $75 million
|
| Coupon: | 4.99%
|
| Maturity: | July 14, 2021
|
|
|
| Tranche B
|
| Amount: | $75 million
|
| Coupon: | 5.09%
|
| Maturity: | July 14, 2023
|
|
|
| Tranche C
|
| Amount: | $84 million
|
| Coupon: | 4.09%
|
| Maturity: | July 14, 2018
|
|
|
| Tranche D
|
| Amount: | $94 million
|
| Coupon: | 4.77%
|
| Maturity: | July 14, 2021
|
|
|
| Tranche E
|
| Amount: | $95 million
|
| Coupon: | 4.87%
|
| Maturity: | July 14, 2023
|
|
|
| Tranche F
|
| Amount: | $16 million
|
| Coupon: | 4.09%
|
| Maturity: | July 14, 2018
|
|
|
| Tranche G
|
| Amount: | $61 million
|
| Coupon: | 4.77%
|
| Maturity: | July 14, 2021
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
