Bloomberg News

Capital Safety Said to Seek $595 Million of Debt for KKR Buyout

November 30, 2011

Nov. 30 (Bloomberg) -- Capital Safety Ltd., a U.K.-based safety-harness maker, is seeking $595 million of debt to back its buyout by KKR & Co., according to a person with knowledge of the deal.

The funding will consist of a $375 million first-lien term loan, a $45 million revolving credit line and $175 million of senior unsecured notes, said the person, who declined to be identified because the financing is private.

KKR agreed to purchase Capital Safety, which has offices in Red Wing, Minnesota, from Arle Capital Partners in a transaction valued at $1.12 billion, Arle Capital said in a Nov. 28 statement. The deal is expected to be completed in January.

UBS AG, Morgan Stanley and KKR Capital Markets have committed financing for the buyout, according to a Nov. 28 statement from KKR. The debt is expected to be syndicated by the end the year, said the person with knowledge of the deal.

--Editors: Chapin Wright, Pierre Paulden

To contact the reporter on this story: Christine Idzelis in New York at cidzelis@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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