Apollo Tyres plans $2.38 billion of debt for purchase of Cooper Tire

By Sara Rosenberg

New York, June 12 - Apollo Tyres Ltd. has received a $2,375,000,000 debt commitment to help fund its acquisition of Cooper Tire & Rubber Co., according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

The debt consists of a $1,875,000,000 bridge loan and a $500 million revolver.

Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., Standard Chartered and Goldman Sachs Bank USA are the joint lead arrangers on the deal.

In addition, the Apollo parties have obtained committed debt financing from Standard Chartered Bank for $450 million for this transaction.

Under the agreement, India-based Apollo Tyres will pay Findlay, Ohio-based Cooper stockholders $35 per share in cash. The transaction is valued at about $2.5 billion.

Closing is expected in the second half of this year, subject to regulatory approvals and other customary conditions.

The combined company will be the seventh-largest tire company in the world, with $6.6 billion of total sales in 2012.

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