Koch Forest Products gets debt commitment from Citi for Georgia-Pacific merger

By Sara Rosenberg

New York, Nov. 14 - Koch Forest Products Inc. has secured a debt financing commitment from Citigroup to back the tender offer by the wholly owned subsidiary of Koch Industries Inc. for all of Georgia-Pacific Corp.'s shares, according to a company news release.

Under the merger agreement, Koch has offered to pay $48.00 per Georgia-Pacific share for an equity value of $13.2 billion and a total enterprise value of $21 billion, including all Georgia-Pacific debt.

Koch Forest Products expects to launch the cash tender offer no later than Nov. 18, followed by a second-step cash-out merger at the offer price.

The transaction is not conditioned on financing.

Assuming completion of the merger, Georgia-Pacific will be operated as a privately held, wholly owned subsidiary of Koch Industries, continue to do business under the Georgia-Pacific name and continue to be based in Atlanta.

Koch Industries is a Wichita, Kan., owner of companies engaged in trading, operations and investments. Georgia-Pacific is a manufacturer and marketer of tissue, packaging, paper, building products and related chemicals.

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