Milwaukee-based Joy Global Inc. announced it has priced an offering of $500 million aggregate principal amount of its 5.125-percent senior notes due Oct. 15, 2021.
The notes will be senior unsecured obligations of Joy Global and will be guaranteed by certain of Joy Global’s material domestic subsidiaries. The notes will be sold at an issue price of 99.151 percent of the principal amount. Joy Global expects the offering to close on Oct. 12, 2011, subject to customary closing conditions.
The company intends to use the net proceeds from the offering to fund in part its previously announced acquisition of 41.1 percent of the outstanding shares of common stock of International Mining Machinery Holdings Limited, and if the 41.1-percent acquisition is completed, a tender offer to acquire up to 100 percent of the remaining shares, with any remaining proceeds used for general corporate purposes.
The acquisition is subject to approval from the Anti-monopoly Bureau of the Ministry of Commerce of The People’s Republic of China and other customary closing conditions.
