Morgan Stanley, Bank of America and Goldman Sachs are backing Bain Capital's $3 billion purchase of a unit of Texas Instruments, according to a filing with the Securities and Exchange Commission. The sensors and controls division being sold produces engineering sensors and controls for manufacturers in the automotive and aircraft industries, among others. According to the filing, Bain will be receiving $2.13 billion in debt financing, comprising senior secured loans, bonds and subordinated notes.
According to the filing, should the sale of loans and bonds be incomplete by the date the acquisition is completed -- expected in the first half of 2006 -- the banks will provide bridge loans. Bain is expected to provide as much as $975 million in equity financing for the acquisition.
Based in Dallas, Texas Instruments is a worldwide provider of digital signal processing and analog technologies. Calls to Goldman, B of A and Bain were not returned. A Texas Instruments' spokesman declined comment.