Morgan Witter Said to Commit Up to $2B to Sunbeam for Buys

Morgan Stanley, Dean Witter & Co. said it will provide Sunbeam Corp. with up to $2 billion in financing for its planned acquisition of three appliance companies, a Sunbeam executive said Monday.

"Morgan has made the commitment and they've been a great team to work with," said Richard Goudis, vice president of finance at Sunbeam. "We look forward to a strong relationship with these guys."

Delray Beach, Fla.-based Sunbeam announced plans yesterday to buy Coleman Co., Signature Brands USA Inc., and First Alert Inc. for cash and stock worth $2 billion.

The structure of Morgan's financing has not yet been determined. But it is likely to include a sizable syndicated loan.

Morgan Stanley launched a bank loan effort in March 1996 when it hired Bram Smith, loan syndications chief at Bankers Trust New York Corp.

That year, the firm led three deals worth $909 million, according to Securities Data Co. In 1997, it lead 11 loans worth $5.076 billion.

Mr. Goudis said Sunbeam hopes to finalize its financing in 30 to 60 days.

"We have been given a commitment up to ($2 billion) and want to make sure that we leave ourselves room for investment and working capital," Mr. Goudis said.

Sunbeam may also take a restructuring charge in conjunction with the transaction, he added. The company also wants to leave itself with additional capacity to acquire more companies.

Sunbeam chief executive officer Albert J. Dunlap hired Morgan Witter in October to provide Sunbeam with strategic guidance. His relationship with the firm goes back to the 1980s when William Strong, a Morgan Stanley managing director, advised Mr. Dunlap on several hostile takeovers.

Ronald O. Perelman is chairman of Coleman, a Wichita, Kan.-based manufacturer of outdoor camping products.

Signature Brands, based in Glenwillow, Ohio, makes consumer and professional products such as Mr. Coffee. First Alert makes residential safety products such as smoke detectors. Those two companies are controlled by Thomas H. Lee Co., the Boston buyout firm.

The transaction is expected to close in April.

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