Genco Distribution to launch $450 million credit facility on Thursday

By Sara Rosenberg

New York, Aug. 3 - Genco Distribution Systems Inc. has scheduled a retail bank meeting for its $450 million credit facility on Thursday, according to a market source.

PNC Bank and Wells Fargo are the lead banks on the deal that is already pretty well syndicated, the source said.

Structure on the deal is not currently being disclosed, but it is known that it will be revolver heavy.

Proceeds will be used to help fund the acquisition of ATC Technology Corp. for $25 per share in cash. The transaction is valued at $512.6 million.

Other funding for the deal will come from the sale of about $125 million of Genco shares to affiliates of Greenbriar Equity Group LLC.

There is a go-shop period until Aug. 17.

Closing is expected during the fourth quarter, subject to stockholder approval, financing and regulatory approvals.

Genco Distribution is a Pittsburgh-based third-party provider of logistics services for retailers, manufacturers and U.S. government agencies. ATC is a Downers Grove, Ill.-based provider of comprehensive engineered solutions for logistics and refurbishment services.

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