Itron gets commitment for $1.107 billion term loan for Actaris buy

By Sara Rosenberg

New York, Feb. 26 - Itron Inc. has received a commitment for a $1.107 billion senior secured term loan to help fund its acquisition of Actaris Metering Systems, according to an 8-K filed with the Securities and Exchange Commission Monday.

UBS is the lead bank on the deal.

The term loan will be denominated in dollars, euros and sterling.

Other acquisition financing will come from $325 million of cash on hand and $225 million from a private placement of equity.

Following the transaction, total debt to EBITDA will be around 5.8 times and EBITDA to interest expense will be around 2.8 times.

Itron is buying Actaris for €800 million plus the retirement of about €445 million of debt, which, at an exchange rate of 1.30, totals about $1.6 billion.

The acquisition is expected to close in the second quarter, subject to review by several regulatory bodies in countries outside the United States, including, Ukraine, Germany, Brazil, Spain and Portugal.

Itron is a Liberty Lake, Wash., provider of hardware, software and services to integrate the creation, measurement, collection, management, application and forecasting of data for electric, gas and water utilities. Actaris is a Europe-based electricity, gas and water metering company.

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