Parker-Hannifin signs new bridge loan to finance Meggitt deal

(Alliance News) - Parker-Hannifin Corp said Tuesday it has signed a new USD2.00 billion senior ...

Alliance News 31 August, 2021 | 9:58AM
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(Alliance News) - Parker-Hannifin Corp said Tuesday it has signed a new USD2.00 billion senior loan facility to help finance its deal to buy Meggitt PLC.

A couple of weeks ago, the board of the Coventry, England-based aerospace components maker Meggitt "recommended unanimously" Parker's 800 pence-per-share offer, worth about GBP6.3 billion, with a court and general meeting set for September 21 for shareholders to decide on the deal.

Prior to the shareholder vote, Parker-Hannifin entered a new USD2.00 billion senior unsecured term loan facility, to act as a bridge facility, with Citibank.

"The proceeds of loans drawn under the bridge facility and the term loan facility will be used for the purpose of, amongst other things, financing any amount payable under or in connection with the acquisition," Parker said.

It continued: "Citi, as financial adviser to Parker, is satisfied that sufficient resources are available to Parker to satisfy in full the consideration payable to scheme shareholders under the terms of the acquisition."

Meggit continues to recommend Parker-Hannifin Corp's takeover offer over the approach of rival TransDigm Group Inc.

That's even after TransDigm made a possible offer of 900p per share. The Cleveland, Ohio-based peer on Monday was given a deadline of September 14 by the UK Takeover Panel to decide if it will make a firm offer or walk away from the deal.

Although TransDigm's proposal is worth more, Meggitt said it would only consider a competing offer if it includes commitments at least equal to those offered by Parker - including honouring UK government contracts, maintaining the UK business structure and workforce, and funding Meggitt's pension schemes.

By Paul McGowan; paulmcgowan@alliancenews.com

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Meggitt PLC 738.60

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