MONTREAL, Quebec (BRAIN)—Dorel Industries has secured new long-term financing through the sale of $200 million in guaranteed notes.
The $2.2 billion Canadian company owns several bike brands including Cannondale, GT, Mongoose, Schwinn, Pacific Cycle, Sugoi and Iron Horse, as well as distributors in Australia and the U.K. Dorel also has divisions in home furnishing and juvenile products.
On Tuesday, the company issued $50 million of Series A Senior Guaranteed Notes and US$150 million of Series B Senior Guaranteed Notes, bearing interest at 4.24 percent and 5.14 percent, respectively.
The notes were purchased by a group of institutional investors including Prudential Capital Group, an institutional investment business of Prudential Financial, Inc. The principal repayment of the Series A notes is due in April 2015, and the principal repayments of the Series B notes begin in April 2013 with the final payment due in April 2020.