ZF Friedrichshafen plans new debt financing for Wabco purchase

By Sara Rosenberg

New York, March 28 – ZF Friedrichshafen has received a commitment for debt financing to help fund its acquisition of Wabco Holdings Inc., according to an 8-K filed with the Securities and Exchange Commission on Thursday.

J.P. Morgan Securities plc is the lead arranger on the debt financing.

Other funds for the transaction are expected to come from cash on hand.

Under the agreement, ZF will acquire all outstanding shares of Wabco for $136.50 per share in an all-cash transaction for an equity value of over $7 billion.

Due to the cash flow profile of both companies, ZF expects to reduce financial leverage significantly following the completion of the transaction.

Closing is expected in early 2020, subject to approval by Wabco’s shareholders, regulatory approvals and other customary conditions.

ZF Friedrichshafen is a Germany-based provider of driveline and chassis technologies. Wabco is a Bern, Switzerland-based supplier of technologies and services that improve the safety, efficiency and connectivity of commercial vehicles.

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