Bway to issue $190 million notes, obtain $90 million credit facility for LBO

By Peter Heap

New York, Nov. 8 - Bway Corp. said it will issue $190 million of senior subordinated notes and obtain a new $90 million credit facility to finance the leveraged buyout of the company by private investment firm Kelso & Co., LP.

The acquisition and related transactions will require $330.3 million cash and other consideration, Bway said in a filing with the Securities and Exchange Commission Friday. That figure will fund $195.6 million of cash payable to holders of Bway's stock and options, a tender offer for the company's $100 million 10¼% senior subordinated notes due 2007 (plus $4.8 million of accrued interest) and fees and expenses of approximately $29.8 million.

Kelso will contribute $79.9 million of equity and holders of some existing stock and options will roll over $20.3 million.

Bway said up to $40 million of the $90 million credit facility will be available to finance the LBO.

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