Ritchie Bros. gets commitment for revolver, $850 million bridge loan

By Sara Rosenberg

New York, Aug. 31 – Ritchie Bros. Auctioneers Inc. has received a commitment for a $150 million senior secured revolving credit facility and an $850 million senior unsecured bridge loan to fund its acquisition of IronPlanet for about $758.5 million and refinance certain debt, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

The company may replace all or a portion of the bridge loan with senior unsecured debt securities or other bank loan facilities.

Goldman Sachs Bank USA is leading the financing.

Following the close of the transaction, net debt to EBITDA will be no more than 3x.

Closing is expected by the first half of 2017, subject to regulatory clearances and the satisfaction of other customary conditions.

Ritchie is a Vancouver-based industrial auctioneer and an equipment distributor. IronPlanet is a Pleasanton, Calif.-based online marketplace for used heavy equipment and other durable asset sales.

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