Wednesday, September 08, 2010 1:42:46 PM
CPPIB, Onex to Raise $1.6 Billion of Leveraged Loans for Tomkins Deal
Canada Pension Plan Investment Board and Onex Corp., the nation’s
biggest buyout firm, seek a $1.6 billion buyout loan as part of a debt
package to fund their buyout of Tomkins Plc, two people familiar with
the situation told Bloomberg.
(September 8, 2010) -- The Canada Pension Plan Investment Board (CPPIB) and Onex Corp., the nation's biggest buyout firm, plan to raise $1.6 billion leveraged loans as part of a debt package to fund their buyout of Tomkins Plc, Bloomberg reported.
According to the news source, lenders are invited to a meeting today in New York for the six-year $1 billion of term loan B portion of the deal, while the remaining of the financing consists of a $300 million term loan A and a $300 million revolving credit line.
According to the statement, Toronto-based Onex and CPPIB will each contribute $1.1 billion from their own resources. Onex will fund its portion from Onex Partners III LP private equity fund. Canada Pension Plan, the country’s second-biggest retirement fund, will use existing cash. In July, Onex and CPPIB said they agreed to buy Tomkins for $4.4 billion.
To contact the aiCIO editor of this story: Paula Vasan at pvasan@assetinternational.com; 646-308-2742.
Follow on Twitter at @ai_CIO