Bell Sports seen bringing $150 million bond deal as part of acquisition by Fenway

By Paul Deckelman and Sara Rosenberg

New York, Aug. 26 - Bell Sports Corp. was heard by market sources Thursday to be planning a $150 million issue of new bonds as part of the financing for the acquisition of the Irving, Tex.-based maker of sports helmets by Fenway Partners Inc., a deal announced earlier this month.

According to market sources, the bond deal will be a September event, likely to launch post-Labor Day via Goldman Sachs and Wachovia Securities - around the same time that Goldman, Wachovia and UBS Investment Bank will be launching a companion $160 million bank debt deal as part of the Fenway acquisition financing. The market sources said that the bank debt portion of the funding will consist of a $110 million term loan and a $50 million revolving credit facility.

Word of the upcoming bond deal was still under the radar of many normally savvy primaryside sources queried Thursday by Prospect News.

Goldman Sachs is the financial advisor for Fenway Partners, while Wachovia Securities affiliate Wachovia Capital Partners is one of the current owners of Bell, along with Chartwell Investments Inc. and GarMark Partners LP. CIBC World Markets Corp. advised Bell in negotiating the merger deal, according to published reports, but there was no immediate word as to whether it will be part of the underwriting group for either portion of the financing.

Fenway Partners announced on Aug. 12 that it planned to acquire Bell Sports for $240 million, and would merge it into an athletic helmet maker it already owns as part of its portfolio, Chicago-based Riddell Sports Group Inc.

While Bell makes helmets for such sports as bicycle riding and skiing, Riddell is a major supplier of football helmets to high schools, colleges and even the National Football League. Fenway said at the time the deal was announced that the combination of Bell and Riddell "creates a pre-eminent head protection company." Both companies also make other equipment and apparel for various sports. Bell's focus is on bicycling and other action sports such as downhill skiing and snowboarding. Besides football helmets, Riddell - bought by Fenway Partners in 2003 - is a provider of other branded sporting goods, equipment reconditioning services and sports collectibles.

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