Arizona Chemical in early round for its $520 million credit facility

By Sara Rosenberg

New York, Oct. 28 - Arizona Chemical Inc. is doing an early round of syndication for banks right now for its $520 million credit facility and a retail round is expected to take place soon, according to a market source.

Goldman Sachs & Co. is the lead arranger on the deal.

The facility consists of a $50 million revolver and a $470 million term loan B, the source said.

Proceeds will be used to help fund American Securities' purchase of a controlling interest in the company from Rhone Capital.

Rhone, along with other current investors and the management team, will retain 25% of the company's ownership.

The transaction is expected to close in the fourth quarter, subject to regulatory approvals and customary conditions.

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

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