Grace seeks OK of engagement letters for $1.2 billion in financing

By Caroline Salls

Pittsburgh, Jan. 15 - W.R. Grace & Co. requested court approval to enter into exit financing engagement letters with Goldman, Sachs & Co., Goldman Sachs Lending Partners LLC and Deutsche Bank Securities Inc. under which the lenders would arrange for up to $1.2 billion in exit financing, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company said its appropriate exit financing package is likely to include one or more senior secured term loan facilities, a senior secured revolving credit facility and debt securities.

As a result, under the first engagement letter, the lenders would arrange for exit financing facilities.

Meanwhile, under the second engagement letter, they would arrange for an underwritten offering or private placement of debt securities as investment banks.

Grace said it expects to owe up to $30 million to the lenders under the engagement letters, including any applicable break-up fees.

A hearing is scheduled for Feb. 5.

W.R. Grace, a Columbia, Md.-based specialty chemicals company, filed for bankruptcy on April 2, 2001. Its Chapter 11 case number is 01-01139.

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