Nexeo plans $1.2 billion credit facility with purchase by WL Ross

By Sara Rosenberg

New York, March 21 – Nexeo Solutions Holdings LLC has received a commitment for a $1,205,000,000 credit facility to help fund its acquisition by WL Ross Holdings Corp., according to an 8-K filed with the Securities and Exchange Commission on Monday.

Bank of America Merrill Lynch, Jefferies Finance LLC and Deutsche Bank Securities Inc. are the lead banks on the debt.

The facility consists of a $630 million term loan and a $575 million ABL facility, under which $75 million will be drawn at closing.

Pro forma leverage is 3.8 times.

Under the agreement, Nexeo is being bought from TPG for up to 35 million shares of WL Ross Holdings common stock plus $1,296,000,000 in cash and assumed net debt for a total consideration of $1,646,000,000, assuming a $10.00 per share valuation for the shares of common stock.

As part of the transaction, TPG will roll over a substantial portion of its existing equity and retain about 35% ownership.

Upon completion of the transaction, WL Ross Holdings will change its name to Nexeo Solutions Inc.

Closing is expected in Early June, subject to regulatory approvals and WL Ross Holdings stockholder approval.

Nexeo is a Houston-based distributor of chemicals and plastics and provider of environmental services.

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