Wachovia Securities, J.P. Morgan and Merrill Lynch have launched syndication of the $625 million bank loan backing Roper Industries' $475 million acquisition of Neptune Technology Group from Investcorp . Price talk on both the three-year, $175 million revolver and five-year, $450 million "B" loan is LIBOR plus 21/ 4%.
Roper is also planning to issue $150 million of convertible subordinated notes and $200 million of common stock. The new bank lines will refinance existing debt under the company's revolver and $125 million of senior notes. J.P. Morgan and Wachovia are putting in most of the debt financing, but Merrill is leading the equity financing, said a banker (LMW, 10/27).
Investcorp bought Neptune from Schlumberger in 2001. Earlier this year, the private equity firm took a dividend in the neighborhood of $120 million through a refinancing led by UBS (3/23). The Neptune business is expected to generate $57-60 million in EBITDA in 2003. Neptune is a manufacturer of water meters and meter reading systems. Roper produces control systems, imaging products, pumps and instruments. Calls to Wachovia and Merrill Lynch bankers were not returned. A J.P. Morgan spokesman did not return calls.