Arizona Chemical firms Feb. 1 launch for first-, second-lien facility

By Sara Rosenberg

New York, Jan. 23 - Arizona Chemical has firmed up timing for the launch of its proposed first- and second-lien credit facility with the scheduling of a bank meeting for Feb. 1, according to a market source.

Previously, it was known that the deal was targeted to launch next week, but a specific date had been unavailable.

Goldman Sachs is the left lead bank on the deal.

The facility will be comprised of a revolver, a first-lien term loan that will have both euro and dollar tranches, and a second-lien term loan, the source said.

Details on the tranche sizes are expected to emerge within the next couple of days.

Proceeds from the credit facility will be used to help fund Rhone Capital III LP's buyout of the company from International Paper for about $485 million.

As part of the transaction, International Paper will acquire a minority interest of about 10% in the acquisition vehicle to be formed by Rhone Capital.

The transaction is expected to close in the first quarter, subject to certain customary closing conditions.

Arizona Chemical is a Jacksonville, Fla., supplier of pine chemicals to the adhesives, inks and coatings and oleochemicals markets.

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