Celanese to market some of its proposed term B to U.S. investors

By Sara Rosenberg

New York, March 30 - A portion of Celanese AG's proposed €500 million term loan B will be marketed in the United States, assuming that the Blackstone bid to take the company private is successful, according to an informed source. Deutsche Bank and Morgan Stanley are the lead banks on the deal.

The institutional term loan is priced with an interest rate of Libor plus 275 basis points.

Celanese's proposed credit facility also contains a €250 million revolver and a €150 million letter-of-credit facility, both priced with an interest rate of Libor plus 250 basis points, according to the source.

Proceeds from the credit facility would be used to help fund the acquisition of Celanese by Blackstone. In order for Blackstone to be successful in its voluntary public takeover offer of Celanese at a price of €32.50 per share, at least 75% of the Celanese shares outstanding at the end of the acceptance period, excluding treasury shares, must be validly tendered and not withdrawn at the end of the acceptance period. On a preliminary basis, Blackstone announced on Tuesday that it tendered 80% of shares, successfully reaching the threshold needed for the takeover.

Celanese is a German-based chemical company.

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