Kraton Polymers deal size firms at $390 million; timing pinned down for Tuesday

By Sara Rosenberg

New York, Dec. 1 - Kraton Polymers Group is definitively scheduled to hold a bank meeting on Tuesday for a proposed $390 million credit facility consisting of a $60 million revolver and a $330 million term loan, according to a market source.

It was previously expected that the deal would launch in early December with Tuesday being targeted for the bank meeting, however, the scheduling was still fluid. It was also previously anticipated that the credit facility would be sized in the $300 million area, with some expecting the deal to total $330 million.

UBS Securities and Goldman Sachs are the joint lead arrangers on the bank deal.

Proceeds from the loan, combined with proceeds from a bond offering that is being led by UBS and Goldman as well, will be used to help support the company's leveraged buyout by Texas Pacific Group from Ripplewood Holdings LLC

Under the acquisition agreement, 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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.