Aug. 25 at 10:19 PM
Madison Air Solutions shares rose about 10% after the company announced a
$2.25 billion private placement to help finance its acquisition of ebm-papst. The company agreed to sell 90.1 million Class A shares at
$24.97 each to accredited investors, with the transaction expected to close around Sept. 1.
Chairman Larry Gies will purchase
$300 million of shares, while an entity linked to him, Madison Solutions LLC, will acquire another
$320 million. Goldman Sachs is acting as lead placement agent, with Barclays as placement agent.
Madison Air plans to use the proceeds to fully fund the equity portion of its previously announced acquisition of ebm-papst for approximately
$5 billion in cash. The deal will also be financed with about
$2.8 billion of debt and cash. Pro forma net leverage is expected at about 3.7x at closing, with the company targeting below 2.5x within two years through free cash flow generation.
$MAIR