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OM gets commitments for $700 million term loans, $75 million revolver
By Angela McDaniels
Tacoma, Wash., June 26 – The financing for OM Group, Inc.’s leveraged buyout is expected to include a $450 million seven-year senior secured first-lien term loan, a $75 million five-year senior secured first-lien revolving credit facility and a $125 million eight-year senior secured second-lien term loan, according to a schedule 14A filing with the Securities and Exchange Commission.
As previously reported, OM Group agreed to be acquired by Apollo Global Management, LLC for $34 per share in cash.
Apollo received a commitment for the $650 million of credit facilities from Credit Suisse Securities (USA) LLC, Credit Suisse AG and Sumitomo Mitsui Banking Corp.
The borrower will be Duke Acquisition Holdings, LLC, an indirect subsidiary of funds affiliated with Apollo Management VIII, LP.
The initial effectiveness of the credit facilities will be subject to the closing of the acquisition and the refinancing or repayment of some existing debt, among other conditions.
Additional funds for the transaction will come from equity financing.
Loan from MacDermid
After Apollo acquires OM Group, OM Group will sell its photomasks and electronic chemical businesses to MacDermid Americas Acquisition Inc., a subsidiary of Platform Specialty Products Corp.
MacDermid will acquire most of the businesses for about $240 million after the acquisition of OM Group closes and the remaining portion of the businesses in January 2016 for about $125 million.
MacDermid has committed to provide a $125 million senior secured term loan to Apollo. The initial borrower will be Duke Acquisition, Inc., a subsidiary of Duke Acquisition Holdings. Following the merger, OM Group will become the borrower under this loan.
OM Group is a Cleveland, Ohio-based technology-driven diversified industrial company.
Platform is a Miami-based specialty chemicals company.
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