Apex Tool Said to Seek $1.01 Billion Loan for Bain Capital LBO
Apex Tool Group LLC is seeking $1.01 billion of loans to back its buyout by Bain Capital Partners LLC, according to a person with knowledge of the transaction.
The financing will include a $835 million seven-year term loan and a $175 million revolving line of credit maturing in five years, said the person, who asked not to be identified because the information is private.
Barclays Plc, Goldman Sachs Group Inc., Morgan Stanley, Royal Bank of Canada, Citigroup Inc. and Deutsche Bank AG are arranging the financing and will host a lender meeting Jan. 11 at 10 a.m. in New York, the person said.
The term loan will be covenant-lite, meaning the it will not carry typical lender protection such as financial- maintenance requirements, said the person. Leverage, or debt to earnings before interest, taxes, depreciation and amortization, will be 5.4 times total.
Bain Capital is acquiring the company from Danaher Corp. (DHR) and Cooper Industries Plc for $1.6 billion and the deal expected to close in the first half of 2013, according to an Oct. 10 statement. Danaher and Cooper each own a 50 percent interest in Apex Tool.
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