Size and structure emerge on Apollo/Eastman Chemical acquisition loan

By Sara Rosenberg

New York, June 18 - A size of $145 million surfaced on the new credit facility that will be used to help finance Apollo Management LP's acquisition of some businesses and product lines in Eastman Chemical Co.'s coatings, adhesives, specialty polymers and inks segment, according to a market source.

The structure of the deal was also revealed. The facility is set to consist of a $30 million revolving credit facility and a $115 million term loan B, the source added.

The deal is set to launch via a bank meeting on Tuesday.

JPMorgan and Bear Stearns are the lead arrangers on the facility, with JPMorgan listed on the left.

In addition to the bank debt, equity will be used to fund the transaction, the source added.

The acquisition is valued at $215 million, including cash of $165 million at closing, plus a $50 million note payable to Eastman. Closing, which is targeted for prior to the end of July, is subject to regulatory approval and other customary closing conditions.

J.P. Morgan Securities Inc. acted as exclusive financial adviser to Eastman on this transaction.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.