Four banks have launched syndication of a $250 million Canadian revolver and a $275 million "B" loan for Bain Capital's acquisition of Bombardier 's recreational products business. Pricing is LIBOR plus 3% on the revolver and LIBOR plus 31/4 % on the term loan, according to a banker. Merrill Lynch, UBS , Royal Bank of Canada and BMO Nesbitt Burns are leading the deal. The financing package will also feature a $200 million subordinated note offering.
Bain is buying the business with members of the Bombardier family and Caisse de Depot et Placement du Quebec for $880 million. Bain will hold 50% of the new company, the Bombardier family 35% and Caisse 15%. Bombardier's recreation unit makes Sea-Doo boats and Ski-Doo snowmobiles. Merrill and BMO acted as advisors to the transaction along with CIBC World Markets (LMW, 9/1).