Kraton Polymers to obtain new credit facility and issue bonds to support LBO

By Sara Rosenberg

New York, Nov. 14 - Kraton Polymers Group is expected to obtain a new credit facility and offer high-yield bonds to help support the company's leveraged buyout by Texas Pacific Group from Ripplewood Holdings LLC, according to a market source.

UBS Securities and Goldman Sachs are the joint lead arrangers on the bank deal and are leading the bond deal as well.

Sizes on the two debt offerings are still to be determined, the source added.

Under the acquisition agreement, which was announced this past Monday, Kraton is attributed a total enterprise value of $770 million. The transaction is expected to close by year end.

UBS Investment Bank acted as merger adviser to Texas Pacific Group. Morgan Stanley and Credit Suisse First Boston served as financial advisers to Ripplewood.

Kraton is a Houston specialty chemicals company and a producer of styrenic block copolymers.

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