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Westlake gets commitments for $1.77 billion 364-day bridge loan
By Susanna Moon
Chicago, June 14 – Westlake Chemical Corp. obtained commitments for a $1,765,000,000 364-day senior bridge term loan credit facility with Deutsche Bank AG, Cayman Islands Branch and Goldman Sachs Bank USA, according to an 8-K filing with the Securities and Exchange Commission.
As announced June 10, the bank commitments are for the financing of the company’s planned acquisition of Axiall Corp.
The commitments will end on the earliest of 11:59 p.m. ET on Jan. 31, 2017; the closing of the merger without drawing on the bridge facility; the date that the merger agreement is terminated by Westlake or expires and receipt by the administrative agent of the bridge facility of written notice from Westlake of its election to terminate all commitments under the facility in full, the release noted.
The initial interest rate will be Libor plus a margin ranging from 112.5 basis points to 187.5 bps depending on the company’s debt ratings. The margin will increase to a range of 137.5 bps to 212.5 bps on the 90th day following closing, to a range of 162.5 bps to 237.5 bps on the 180th day following closing and to a range of 187.5 bps to 262.5 bps on the 270th day following closing.
The companies entered into a definitive agreement for Westlake to acquire all of the outstanding shares of Axiall for $33 per share in cash, for an enterprise value of about $3.8 billion, including debt and other Axiall liabilities, as previously noted.
The transaction has been approved by the boards of directors of both companies and is expected to close by the fourth quarter.
Deutsche Bank and Goldman Sachs & Co. are the financial advisers to Westlake, and Morgan Stanley & Co. LLC and Barclays are the financial advisers to Axiall.
Westlake Chemical is a manufacturer and supplier of petrochemicals, polymers and building products with headquarters in Houston. Axiall is an integrated chemicals and building products company based in Atlanta.
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