Baldor talks $550 million 10-year notes at 8½%-8¾%; pricing Thursday

By Paul A. Harris

St. Louis, Jan. 24 - Baldor Electric Co. talked its $550 million offering of 10-year senior notes (B3/B) at 8½% to 8¾% on Wednesday, according to a market source.

Pricing is expected on Thursday afternoon.

BNP Paribas and Lehman Brothers are joint bookrunners for the notes, which have been registered with the Securities and Exchange Commission. SunTrust Robinson Humphrey is the co-manager.

The notes come with five years of call protection.

Proceeds will be used to finance the acquisition of the Reliance Electric and Dodge businesses from Rockwell Automation, Inc.

Concurrently with the notes, the company is putting in place a new $1.2 billion senior credit facility via BNP Paribas and SunTrust and is making an offering of 6.25 million common shares, which is expected to generate $200 million of proceeds.

Baldor also plans to sell 600,000 shares of mandatorily convertible preferred stock via UBS and others, which is expected to generate $150 million of proceeds.

Baldor is a Fort Smith, Ark., manufacturer of industrial electric motors, drives and generators.

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