Simpson Thacher is representing JPMorgan Chase Bank, N.A. in providing committed financing for Regal Rexnord Corporation’s (“Regal Rexnord”) announced acquisition of Altra Industrial Motion Corp. (“Altra”). The acquisition provides for Regal Rexnord to acquire 100% of Altra shares in an all cash transaction for $62.00 per share, approximately $4.95 billion in the aggregate. The committed financing consists of (i) a 364-day senior bridge loan credit facility in an amount up to approximately $5.5 billion and (ii) in the event that Regal does not obtain certain required consents from the lenders under its current credit facility, a backstop credit facility in an amount up to approximately $2.03 billion, consisting of a $1.0 billion backstop revolving credit facility and approximately $1.03 billion backstop term loan facilities.
Regal Rexnord is a global leader in the engineering and manufacturing of industrial powertrain solutions, power transmission components, electric motors and electronic controls, air moving products, and specialty electrical components and systems.
Altra is a premier industrial global manufacturer and supplier of highly engineered motion control, automation, and power transmission systems and components.
The Simpson Thacher team includes Jessica Tuchinsky, Leah Nudelman and Mari Zaldivar (Banking and Credit); Dave Azarkh, Ben Heriaud, Kaitlyn Posa and Nikaury Payano (Capital Markets); Michael Mann (Tax); Ryan Stott, Guanxiong Xu and Daniel Venditti (Executive Compensation and Employee Benefits); Melanie Jolson (Intellectual Property); and Michael Isby (Environmental).