RBC Bearings Incorporated Announces Proposed Offerings of Common Stock and Mandatory Convertible Preferred Stock

OXFORD, Conn.--(BUSINESS WIRE)--Sep. 20, 2021-- RBC Bearings Incorporated (Nasdaq: ROLL), a leading international manufacturer and marketer of highly engineered precision bearings and products for the industrial, defense and aerospace industries, today announced that it has commenced concurrent public offerings of 3 million shares of its common stock and $400 million in aggregate liquidation preference of Series A Mandatory Convertible Preferred Stock (the "mandatory convertible preferred stock"). RBC Bearings also expects to grant the underwriters of the common stock offering a 30-day option to purchase up to an additional 450,000 shares of its common stock, and expects to grant the underwriters of the mandatory convertible preferred stock offering a 30-day option to purchase up to an additional $60 million of aggregate liquidation preference of its mandatory convertible preferred stock solely to cover over-allotments. The completion of the common stock offering will not be contingent on the completion of the mandatory convertible preferred stock offering, and the completion of the mandatory convertible preferred stock offering will not be contingent on the completion of the common stock offering. The offerings are subject to market and other conditions, and there can be no assurance as to whether or when either or both of the offerings may be completed, or as to the actual size or terms of either of the proposed offerings.

RBC Bearings is conducting the proposed offerings in connection with its financing of its previously announced pending acquisition of the Dodge Mechanical Power Transmission Business ("Dodge") of ABB Asea Brown Boveri Ltd. RBC Bearings intends to use the net proceeds from the offerings of common stock and mandatory convertible preferred stock to fund a portion of the cash purchase price for the pending acquisition of Dodge, to pay acquisition-related fees and expenses, and for other general corporate purposes.

The mandatory convertible preferred stock is expected to have a liquidation preference of $100 per share. Unless previously converted or redeemed, each outstanding share of mandatory convertible preferred stock will automatically convert, for settlement on or about October 15, 2024 (subject to postponement in certain limited circumstances), into a variable number of shares of RBC Bearings' common stock. RBC Bearings will have the right to redeem all, but not less than all, of the mandatory convertible preferred stock if RBC Bearings' pending acquisition of Dodge is not completed within a specified period of time. The dividend rate, conversion terms and other terms of the mandatory convertible preferred stock will be determined at the time of pricing of the mandatory convertible preferred stock offering and remain subject to change.

Goldman Sachs & Co. LLC and Wells Fargo Securities, LLC are acting as joint lead book-running managers for the offerings. BofA Securities, Inc., Citigroup Capital Markets, Inc. and Truist Securities, Inc. are acting as joint book-running managers for the offerings and Citizens Capital Markets, Inc., KeyBanc Capital Markets Inc., Fifth Third Securities, Inc., Regions Securities LLC, Morgan Stanley & Co. LLC, Academy Securities, Inc. and William Blair & Company, L.L.C. are acting as co-managers for the offerings.

Each offering may be made only by means of a prospectus supplement and an accompanying prospectus. RBC Bearings has filed a registration statement (including a prospectus) and preliminary prospectus supplements with the Securities and Exchange Commission ("SEC") for the offerings to which this press release relates. Before you invest, you should read the applicable preliminary prospectus supplement and the prospectus in that registration statement and other documents RBC Bearings has filed with the SEC for more complete information about RBC Bearings and the offerings. You may obtain these documents free by visiting EDGAR on the SEC's website at www.sec.gov. Alternatively, RBC Bearings, any underwriter or any dealer participating in the applicable offering will arrange to send you the applicable preliminary prospectus supplement (or, when available, the applicable final prospectus supplement) and the accompanying prospectus upon request. You may also send a request to: Goldman Sachs & Co. LLC, via telephone: (866) 471-2526 or (212) 902-1171, facsimile: (212) 902-9316, email: [email protected], or standard mail: Goldman Sachs & Co. LLC, 200 West Street, New York, New York 10282, Attention: Prospectus Department; or Wells Fargo Securities, LLC, via standard mail: c/o Equity Syndicate Department, 500 West 33rd Street, New York, New York 10001, telephone: (800) 326-5897, or email: [email protected].

This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities referred to in this press release, nor will there be any sale of any such securities, in any state or other jurisdiction in which such offer, sale or solicitation would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.

About RBC Bearings

RBC Bearings Incorporated is an international manufacturer and marketer of highly engineered precision bearings and components. Founded in 1919, the Company is primarily focused on producing highly technical or regulated bearing products and components requiring sophisticated design, testing and manufacturing capabilities for the diversified industrial, aerospace and defense markets. The Company is headquartered in Oxford, Connecticut.

Forward-Looking Statements

This press release includes forward-looking statements, including statements regarding the completion, timing and size of the proposed offerings, the intended use of the net proceeds from the proposed offerings, the consummation of the pending acquisition of Dodge and the terms of the securities being offered. Forward-looking statements represent RBC Bearings' current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements. Among those risks and uncertainties are market conditions, including market interest rates, the trading price and volatility of RBC Bearings' common stock, the satisfaction of the closing conditions related to the pending acquisition of Dodge, and risks relating to RBC Bearings' business, including those described in periodic reports that RBC Bearings files from time to time with the SEC. RBC Bearings may not consummate the proposed offerings described in this press release and, if the proposed offerings are consummated, cannot provide any assurances regarding the final terms of the offerings, the terms of the mandatory convertible preferred stock or its ability to effectively apply the net proceeds as described above. The forward-looking statements included in this press release speak only as of the date of this press release, and RBC Bearings does not undertake to update the statements included in this press release for subsequent developments, except as may be required by law.

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RBC BearingsRobert M. Sullivan
203-267-5014
[email protected]

Alpha IR GroupMichael Cummings
617-461-1101
[email protected]

Source: RBC Bearings Incorporated

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