SRAM has edged closer to its initial public offering, with new credit facilities and the company’s latest move to buy out the private equity firm Trilantic that originally invested in SRAM back in 2009.
According to documents filed with the US Securities & Exchange Commission (SEC), SRAM LLC entered into new credit facilities consisting of a first-lien term and revolving facility and a second-lien term facility on 7 June 2011.
The aggregate proceeds from the new credit facilities were US$790, which were used to repay the entire outstanding amount under SRAM’s prior credit facilities. As of 7 June, this was US$194.8 million (including accrued interest).
With its new credit facility, SRAM acquired all of the 3,640,000 Class A units of SRAM Holdings LLC held by Trilantic and its co-investors for US$575.0 million and paid all fees and expenses related to the refinancing.
The US$575.0 million received by Trilantic and its co-investors was in full payment for all of their interests in SRAM.
In connection with these transactions, SRAM amended and restated its operating agreement to combine the Class A and the Class B shares into a single class of common units and eliminated the corporate governance and liquidity rights of Trilantic and its co-investors.
It is understood that SRAM, which recently acquired US power meter business Quarq Technology Inc, intends to use the proceeds from the IPO to repay debt. Filings with the SEC have yet to reveal how many shares SRAM plans to sell or their expected price.
