Bear Stearns, Goldman Sachs and Bank of America have launched syndication of a $570 million deal for Aearo Technologies. The deal is being used to fund the $760 million leveraged buyout of the company from Bear Stearns Merchant Banking by European private equity firm Permira. As a part of the buyout, Aearo Technologies will have a 10% stake in the holding company that is formed from the acquisition.
The deal comprises a $60 million revolver, a $340 million term loan "B" and a $170 million second-lien loan. Pricing on the first-lien tranches is LIBOR plus 2 1/2%, while the second-lien comes in at LIBOR plus 6 1/2%. The deal launched last Tuesday.
Located in Indianapolis, Ind., Aearo Technologies produces and markets protection equipment such as earplugs, goggles, face shields, hard hats and respirators. Calls to Jeffrey Kulka, senior v.p. and cfo at Aearo, were not returned. A spokesman at Permira declined to comment as did bankers at Bear Stearns and B of A. Calls to Goldman were not returned.