Bond portion of TPC buyout rises to $655 million from $600 million

By Paul A. Harris

Portland, Ore., Nov. 13 - Bonds backing the buyout of TPC Group Inc. have been upsized to $655 million from $600 million, according to a Schedule 14A document filed on Monday with the Securities and Exchange Commission.

The senior secured notes are backed by a $655 million increasing rate senior secured bridge loan.

Also the group of banks that has committed to the financing was increased to include Deutsche Bank Securities Inc. and Goldman Sachs.

They will join the previously announced banks in the financing commitment: Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc. and Jefferies Finance LLC.

In addition to the bonds, the debt financing also includes a $250 million senior secured asset-based revolving credit facility.

Other funds will come in the form of equity.

Proceeds will be used to fund the acquisition of TPC by First Reserve Corp. and SK Capital Partners in a transaction valued at about $850 million, including net debt.

Closing is expected in the fourth quarter, subject to approval of TPC Group's stockholders, antitrust clearances and other customary conditions.

Based in Houston, TPC Group is a fee-based processor and service provider of value-added products derived from niche petrochemical raw materials.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.