SPX Flow starts roadshow for $570 million eight-year senior notes; early guidance high 8%-9% area

By Abigail W. Adams

Portland, Me., March 7 – Redwood Star Merger Sub. Inc. (SPX Flow Inc.) started a roadshow for a $570 million offering of eight-year non-call three-year senior notes (Caa2/CCC) on Monday that will run through March 17.

Early guidance is for a yield in the high 8% to 9% area, according to a market sources.

BofA Securities Inc. (lead left), Citigroup Global Markets Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., RBC Capital Markets LLC, Truist Securities Inc. and UBS Securities LLC are bookrunners for the Rule 144A and Regulation S offering.

There is an equity clawback of up to 40% at par during the non-call period and a poison put of 101.

Proceeds, together with cash on hand, borrowings under the senior secured credit facility and proceeds from equity will be used to support Lone Star Funds’ acquisition of SPX Flow Inc. and refinance existing credit facilities.

SPX Flow is a Charlotte, N.C.-based manufacturer and supplier of process solutions equipment for the nutrition, health and industrials market.

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