Gardner Denver Said to Set Meetings for $2.73 Billion LBO Loan
Gardner Denver Inc. (GDI), an industrial equipment maker, will meet with lenders next week on $2.73 billion in loans to support its buyout by KKR & Co., according to a person with knowledge of the transaction.
A meeting for U.S. investors will take place on July 9 at 10:30 a.m. in New York while European lenders will meet on July 11 at 12 p.m. in London, said the person, who asked not to be identified because the information is private.
KKR & Co., the private-equity firm run by Henry Kravis and George Roberts, agreed to buy Gardner Denver for about $3.7 billion. The deal is valued at about $3.9 billion, including the assumption of Gardner Denver’s debt.
UBS AG, Barclays Plc, Citigroup Inc., Deutsche Bank AG, Mizuho Bank Ltd, Royal Bank of Canada, Macquarie Group Ltd. and HSBC Holdings Plc are arranging the financing, which includes a $1.8 billion term loan and a $525 million term piece denominated in euros, both due in seven years, and a $400 million revolving line of credit that expires in five years, the person said.
Gardner Denver, based in Wayne, Pennsylvania, makes compressors, pumps and other products. The deal is expected to close in the third quarter.
Under a revolver, money can be borrowed again once it’s repaid; in a term loan, it can’t.
Vikram Kini, a vice president in investor relations at Gardner Denver, didn’t immediately return a phone call seeking comment.
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