Olin to use existing credit facilities, new notes to buy K.A. Steel

By Angela McDaniels

Tacoma, Wash., July 18 - Olin Corp. plans to finance its acquisition of K.A. Steel Chemicals Inc. with bank debt and new notes, according to a company news release.

Olin expects to finance the acquisition with a combination of cash on hand and existing borrowing facilities, and it intends to finance a portion of the purchase price by issuing new senior notes after the closing.

The company signed a definitive agreement to acquire privately held K.A. Steel Chemicals on a cash-free, debt-free basis for $328 million of cash, subject to certain post-closing adjustments. The acquisition is expected to close by the end of the third quarter.

Olin is based in Clayton, Mo., and has two business segments: Chlor Alkali Products, which manufactures chemicals, and Winchester, which makes ammunition.

K.A. Steel Chemicals makes caustic soda, bleach and other chemicals and is based in Lemont, Ill.

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