CPPIB, Onex to Raise $1.6 Billion of Leveraged Loans for Tomkins Deal

(September 8, 2010) — The Canada Pension Plan Investment Board (CPPIB) and Onex Corp., the nation’s biggest buyout firm, plan to raise $1.6 billion leveraged loans as part of a debt package to fund their buyout of Tomkins Plc, Bloomberg reported.

According to the news source, lenders are invited to a meeting today in New York for the six-year $1 billion of term loan B portion of the deal, while the remaining of the financing consists of a $300 million term loan A and a $300 million revolving credit line.

According to the statement, Toronto-based Onex and CPPIB will each contribute $1.1 billion from their own resources. Onex will fund its portion from Onex Partners III LP private equity fund. Canada Pension Plan, the country’s second-biggest retirement fund, will use existing cash. In July, Onex and CPPIB said they agreed to buy Tomkins for $4.4 billion.