RathGibson gets $440 million debt commitment for buyout by DLJ

By Sara Rosenberg

New York, May 2 - RathGibson Inc. has received a $440 million debt financing commitment to help fund its buyout by DLJ Merchant Banking Partners, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

Credit Suisse is the lead bank on the financing.

Under the transaction agreement, DLJ is buying parent company, RGCH Holdings Corp., from Castle Harlan, Inc. for about $440 million.

In connection with this buyout, RathGibson is expected to commence an offer to purchase its 11¼% senior notes due 2014 at a purchase price of 101%.

Completion of the acquisition is expected by June 30, subject to the satisfaction of customary closing conditions.

RathGibson is a Janesville, Wis., specialty manufacturer of highly engineered premium stainless steel and alloy welded tubular products.

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