Goldman Sachs, Wachovia Securities and UBS launched syndication last Thursday of the $160 million credit backing Fenway Partners' $240 million acquisition of Bell Sports Corp. The New-York based private equity firm is buying Bell from an investor group that includes GarMark Partners, Wachovia Investors and Chartwell Investors.
The credit comprises a six-year, $50 million revolver and seven-year, $110 million "B" loan. Price talk is reportedly LIBOR plus 2 3/4% on the revolver and LIBOR plus 3% on the term loan. Leverage is 5.2 times and Fenway will contribute $69 million of equity. The financing also includes $140 million of senior subordinated notes due 2012. Bell Sports, a marketer of bicycle helmets, will be merged with football helmet manufacturer Riddell Sports Group, which Fenway acquired in June 2003 for about $140 million. Standard & Poor's has assigned a BB- rating to the bank debt and Moody's Investors Service has assigned a B1 rating. Bill Oldham, Bell's treasurer, and Mark Genender, a managing director with Fenway, did not return calls.