Ashland Distribution buyout financing includes ABL revolver, bonds

By Sara Rosenberg

New York, Nov. 29 - Ashland Distribution's buyout financing will come from a new ABL revolving credit facility and high-yield bonds, according to a market source.

Bank of America is the lead bank on the debt.

The company previously said in filings with the Securities and Exchange Commission that it has received a commitment for $600 million of debt financing for the transaction.

Under the agreement, TPG Capital is purchasing Covington, Ky.-based Ashland Inc.'s distribution business for $930 million.

Other funds for the buyout will come from $400 million in equity.

The transaction is expected to close prior to the end of the March quarter, subject to the receipt of certain regulatory approvals and other standard closing conditions.

Ashland Distribution has revenues of $3.4 billion and partnerships with many chemical manufacturers.

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