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RM | Capital structures $300 million Private Placement for Prolec-GE
On September 9th, 2021, RM | Capital priced a US$300 million debt private financing for GE-Prolec Transformers (“Prolec”), a 50/50% JV between Xignux & General Electric. With more than 50 years of experience, Prolec is dedicated to the design, manufacture, and sale of electrical power and distribution transformers used in the generation, transmission, and distribution of electrical energy.
On June 9th 2021, Prolec announced that it had entered into a binding agreement with SPX Corp to acquire its Transformer Solutions business for a purchase price of ~US$645mn. The acquisition was 100% debt financed, with $300m coming from the 12yr Private Notes.
The transaction was extremely successful, with total demand nearing $500mn. This allowed the Company to upsize the transaction from an initially desired $250m-size deal.
RM | Capital acted as Sole Advisor & Structuring Agent to the Company, identifying the ideal group of investors and negotiating the terms (including the covenant package) of the Notes.