Sequa $1.35 billion credit facility expected as November business

By Sara Rosenberg

New York, Oct. 24 - Sequa Corp. is anticipated to hold a bank meeting sometime in November to launch its proposed $1.35 billion senior secured credit facility, according to a market source.

Lehman Brothers, Citigroup and JPMorgan are the lead banks on the deal.

The facility consists of a $1.2 billion term loan and a $150 million revolver, according to various filings with the Securities and Exchange Commission.

Proceeds will be used to help fund the leveraged buyout of the company by The Carlyle Group for $175.00 per share in cash. The total transaction value is $2.7 billion.

Other LBO financing will come from $700 million of unsecured senior notes and up to $900 million in equity.

The senior notes offering may include, at the election of the borrower, up to $700 million of PIK election notes pursuant to a Rule 144A private placement.

The buyout was already approved by Sequa shareholders in September.

Sequa is a New York-based diversified industrial company.

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