DuPont Performance to launch $2.9 billion credit facility next week

By Sara Rosenberg

New York, Jan. 3 - DuPont Performance Coatings will be holding a bank meeting in New York at 10:30 a.m. ET on Tuesday and one in London on Wednesday to launch a proposed $2.9 billion senior secured credit facility, according to a market source.

Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., UBS Securities LLC, Jeffries Finance LLC and SMBC are the lead banks on the debt.

The facility consists of a $400 million five-year revolver, a $2.3 billion seven-year covenant-light U.S. term loan and a $200 million seven-year covenant-light euro equivalent term loan, the source said.

Proceeds will be used to help fund the $4.9 billion acquisition of the company by the Carlyle Group from DuPont.

Other funds for the transaction will come from $1.4 billion in bonds and equity.

Net senior secured leverage is around 4 times and net total leverage is about 5.6 times.

Closing is expected this quarter, subject to customary conditions and regulatory approvals.

DuPont Performance Coatings is a Wilmington, Del.-based supplier of vehicle and industrial coating systems.

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