Tomkins talks $1 billion six-year term loan B with Libor plus 475 bps spread, 98-99 OID

By Paul A. Harris

St. Louis, Sept. 8 - Tomkins plc set spread talk for its $1 billion six-year term loan B at Libor plus 475 basis points with a 1¾% Libor floor on Wednesday, according to an informed source.

The price talk is 98 to 99.

The deal also includes a $300 million revolver and a $300 million term loan A.

Citigroup and Bank of America Merrill Lynch are lead arrangers and joint bookrunners. Barclays Capital, RBC Capital Markets and UBS are also joint bookrunners.

Proceeds will be used to help fund the acquisition of the company Pinafore Acquisitions Ltd., a company jointly owned by Onex Corp. and Canada Pension Plan Investment Board, for 325p per share in cash.

The acquisition values Tomkins' existing issued and to-be-issued share capital at £2.89 billion.

Other funding for the transaction will come from $600 million of secured bonds, $1 billion of second-lien bonds and about $2.2 billion of equity.

Closing is expected to take place on Sept. 24.

Tomkins is a London-based engineering and manufacturing group, providing products for the industrial, automotive and building products markets.

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