BNP Paribas is set to launch syndication of a $1.2 billion credit facility for Baldor Electric Co. this Wednesday at a bank meeting at the Parker Meridian in New York. The deal comprises a five-year, $200 million revolver and a seven-year, $1 billion "B" term loan and will back its acquisition of Reliance Electric from Rockwell Automation, according to a banker. Pricing depends on credit ratings, but will probably fall in the range of LIBOR plus 2 1/4-2 1/2%.
SunTrust has a small position on the bank debt and Lehman Brothers has a small position on the $550 million bond deal. Baldor announced it was acquiring the Reliance Electric Co. and the Power Systems business from Milwaukee-based Rockwell in early November for $1.8 billion through a combination of about $1.75 billion in cash and about $50 million in Baldor stock. Along with the debt financing, Baldor plans to commit about $350 million in equity or equity-linked securities.
Fort Smith, Ark.-based Baldor markets, designs and manufactures industrial electrical motors, drives and generators. The Power Systems business markets products under the Reliance Electric and Dodge brand names. Calls to Ronald Tucker, Baldor cfo, were not returned.