Atkore International Group is repurchasing approximately 17 million shares of the company’s common stock from CD&R Allied Holdings for a purchase price of approximately $375 million.
According to a related 8-K filing, Atkore International entered into a debt commitment letter with Deutsche Bank New York Branch and Deutsche Bank Securities. Deutsche has committed to provide up to $425 million under an incremental first lien secured term loan facility, the proceeds of which will be used, among other things, to fund the stock repurchase transaction, to prepay all or a portion of the loans outstanding under the borrower’s asset based loan facility and to pay fees and expenses in connection with the transaction.
Following the completion of the stock repurchase transaction, the CD&R Investor will own approximately 29% of the company’s outstanding common stock, and the company expects its leverage ratio to be approximately 3.5 times on a pro forma basis.
Harvey, IL-based Atkore International Group is a manufacturer of electrical raceway products primarily for the non-residential construction and renovation markets and mechanical products and solutions for the construction and industrial markets.
