Roller Bearing Company of America, Inc.
Overview
| Deal Type |
Debt Capital Markets |
|---|---|
| Size |
$500 Million Senior Notes due 2029 |
| Client & Transactional Partners |
Roller Bearing Company of America, Inc. DODGE |
| Our Role |
Joint Bookrunner |
Summary
On November 1, 2021, Roller Bearing Company of America, Inc. (“RBC Bearings” or the “Company”) successfully closed the acquisition of the DODGE mechanical power transmission division (“DODGE”) of Asea Brown Boveri Ltd. To finance the acquisition, RBC Bearings issued $500 Million Senior Notes due 2029 (the “Notes”), which partially terminated KeyBanc Capital Markets’ (”KBCM”) commitment to the Bridge Facility. Additional acquisition financing included a new $1.8 billion Senior Secured Credit Facility, Convertible Equity and Common Equity. The Notes, which priced on September 23rd, saw strong investor demand and priced through official price talk. Initial price talk was whispered in the low 5.00%s, official price talk later emerged at 4.50%-4.75% and the deal ultimately priced at a coupon of 4.375%. KBCM acted as Joint Bookrunner on the transaction.
RBC Bearings is an international manufacturer and marketer of highly engineered precision bearings and products, which are integral to the manufacture and operation of most machines, aircraft and mechanical systems, to reduce wear to moving parts, facilitate proper power transmission, reduce damage and energy loss caused by friction, and control pressure and flow.
DODGE is a leading manufacturer of mounted bearings and mechanical products with market-leading brand recognition. DODGE manufactures a complete line of mounted bearings, enclosed gearing and precision components across a diverse set of industrial end markets.
