Failure by a Wall Street equity group to complete its multibillion-dollar buyout of certain industrial assets from Hartford’s United Technologies Corp. will entitle UTC to a $223.6 million termination fee, a regulatory filing shows.
Carlyle Group LP and BC Partners Ltd. a week ago agreed to pay UTC $3.6 billion for the industrial businesses of its Hamilton Sundstrand subsidiary. The deal, pending requisite regulatory approvals, is due to close in the fourth quarter.
UTC has earmarked proceeds from that deal towards its $16.8 billion purchase of aerospace components maker Goodrich Corp.
According to UTC’s latest 8-K filing with the Securities and Exchange Commission, Carlyle and its partners agreed to the termination fee.
The deal can be terminated by either party before this New Year’s Eve, or extended through March 31, 2013, if regulatory approvals aren’t in hand by Dec. 31, the filing said.
The filing says Carlyle and partners will pay UTC $3.44 billion cash for the Hamilton industrial assets, plus UTC will keep $20 million in retained cash from the sold units.
Carlyle has lined up an impressive list of Wall Street bankers to advise and finance the deal, among them: Credit Suisse AG, Deutsche Bank AG New York Branch, Deutsche Bank AG Cayman Islands Branch, Royal Bank of Canada, Citigroup Global Markets Inc., Morgan Stanley Senior Funding, Inc., UBS Loan Finance LLC and Goldman Sachs Bank USA
