By Paul A. Harris
Portland, Ore., Sept. 23 – RBC Bearings Inc. priced a $500 million issue of eight-year senior notes (B2/B+) at par to yield 4 3/8% on Thursday, according to market sources.
The yield printed in the middle of the 4½% to 4¾% yield talk and tighter than initial guidance in the low 5% area.
Goldman Sachs & Co. LLC was the left bookrunner. Joint bookrunners were 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.
The issuing entity is 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.
| Issuer: | Roller Bearing Co. of America, Inc.
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| Amount: | $500 million
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| Maturity: | Oct. 15, 2029
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| Securities: | Senior notes
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| Left bookrunner: | Goldman Sachs & Co. LLC
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| Joint bookrunners: | 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
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| Coupon: | 4 3/8%
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| Price: | Par
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| Yield: | 4 3/8%
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| Spread: | 311 bps
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| Call protection: | Three years
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| Trade date: | Sept. 23
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| Settlement date: | Oct. 7
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| Ratings: | Moody's: B2
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| S&P: B+
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 4½% to 4¾%
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| Marketing: | Roadshow
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