Belden announced that it has successfully syndicated and priced a new $1.85 billion senior secured term loan B facility due 2033, providing financing for its pending acquisition of RUCKUS Networks.
The St. Louis-based specialty networking solutions company said the loans under the facility will be issued at 99.75% of face value, representing an original issue discount of 0.25%, and will carry an interest rate equal to SOFR plus 2.25%.
The transaction is expected to close concurrently with the previously announced acquisition of RUCKUS Networks, subject to customary closing conditions.
Belden plans to use proceeds from the financing facility, together with cash on hand, to fund the acquisition and related transaction expenses.
The financing marks another step in Belden’s effort to expand its networking portfolio through the acquisition of RUCKUS Networks. The company previously announced its agreement to acquire RUCKUS, which specializes in enterprise networking solutions.
Belden is a global supplier of specialty networking products and connection solutions serving industrial automation, smart buildings, broadband and other infrastructure markets. The company has operated for more than 120 years and maintains manufacturing capabilities across North America, Europe, Asia, and Africa.
The company cautioned that the completion of the RUCKUS transaction remains subject to customary closing conditions and noted that actual results could differ from expectations due to a variety of factors, including integration challenges and broader economic and market conditions.
