GE Capital is preparing a $220 million refinancing for Roller Bearing, a manufacturer and distributor of precision-bearing products. The deal comprises a $60 million revolver, $115 million "B" loan and $45 million second-lien term loan, according to a market participant. The bank meeting is set for tomorrow in New York City.
Price talk on the revolver is LIBOR plus 3% and the first-lien term loan is being pitched at LIBOR plus 31/4%. Pricing on the second-lien term loan has not yet been determined, said the source. Single-B ratings are expected on the first-lien facilities. Leverage will be 3.3 times through the first lien, 4.4 times through the second lien and total leverage is 5.3 times through the holding company, he explained.
GE and Congress Financial are the leads, and only lenders, on Roller Bearing's existing $104 million facility. The old facility was priced at LIBOR plus 21/4%. "There is tighter pricing there because it was an asset-based facility," the market participant said. GE bankers declined comment and Dan Bergeron, v.p. of finance at Roller Bearing, did not return calls.