Alliant Techsystems Plans $1.86 Billion of Loans for AcquisitionChristine Idzelis
Alliant Techsystems Inc., the world’s largest ammunition maker, plans to meet with lenders to discuss $1.86 billion of potential financing backing its purchase of Bushnell Group Holdings Inc.
The debt may consist of a $1.01 billion term loan A, a $250 million term loan B and a $600 million revolving credit line, Alliant said today in a statement. The Arlington, Virginia-based company will host a meeting with lenders on Oct. 8.
Alliant agreed to acquire Bushnell, a maker of binoculars and riflescopes, from private-equity firm MidOcean Partners for $985 million to expand its branded shooting sports products, according to a Sept. 5 statement.
The new debt would be used to finance the deal, and refinance its term loan and revolving credit lines and for general corporate purposes, Alliant said.
A term loan B is sold mainly to non-bank lenders such as collateralized loan obligations, bank loan mutual funds and hedge funds. A term loan A is sold mainly to banks.
Under a revolver, money can be borrowed again once it’s repaid; in a term loan, it can’t.