SPX Flow outlines financing for buyout by Lone Star

SPX Flow Inc. has outlined the roughly $2.3 billion of debt financing backing its buyout by Lone Star Funds. Citi, BofA Securities, RBC Capital Markets, Truist Securities, BNP Paribas, and Deutsche Bank have committed to providing the financing.

According to a regulatory filing, the debt commitment letter provides for a $1.54 billion, seven-year senior secured first-lien term loan facility; a $200 million, five-year senior secured first-lien revolving credit facility; and a $570 million senior unsecured bridge loan. The equity commitment by the sponsor is for up to $1.878 billion, the filing shows.

NYSE-listed SPX Flow announced Dec. 13, 2021, that it was being taken private by Lone Star Funds in an all-cash deal valued at $3.8 billion, including debt. As of Oct. 2, 2021, the company had $400 million outstanding of a term loan A due August 2026 that was placed last year in a refinancing. Closing of the acquisition is expected in the first half of 2022.

SPX Flow is a provider of process solutions for the nutrition, health and industrial markets.