RBC Bearings talks $500 million eight-year notes to yield 4½%-4¾%; pricing Thursday

By Paul A. Harris

Portland, Ore., Sept. 23 – RBC Bearings Inc. talked its $500 million offering of eight-year senior notes (B2/B+) to yield 4½% to 4¾%, according to market sources.

Official talk comes inside of initial guidance in the low 5% area.

Books close at 1 p.m. ET on Thursday, and the deal is set to price thereafter.

Goldman Sachs & Co. LLC is the left bookrunner. Wells Fargo Securities LLC, BofA Securities Inc., Citigroup Global Markets Inc., Truist Securities Inc., Citizens Capital Markets Inc., KeyBanc Capital Markets Inc., Fifth Third Securities Inc. and Regions Securities LLC are the joint bookrunners.

The notes become callable after three years at par plus 50% of the coupon. They feature a 40% equity clawback at par plus the full coupon during the non-call period.

The issuing entity will be Roller Bearing Co. of America, Inc., a wholly owned subsidiary of RBC Bearings.

The Oxford, Conn.-based bearing and roller manufacturer plans to use the proceeds plus proceeds from its concurrent offerings of common stock, mandatory preferred convertibles and new credit facilities to help fund the acquisition of the Dodge mechanical power transmission division of Asea Brown Boveri Ltd. and for general corporate purposes.

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