Rockwood new joint venture plans €330 million credit facility

By Sara Rosenberg

New York, June 12 - Rockwood Holdings Inc.'s proposed joint venture with Kemira Oyj is expected to get a new €330 million credit facility in connection with its formation, according to an 8-K filed with the Securities and Exchange Commission Thursday.

The facility consists of a €300 million term loan and a €30 million revolver.

The joint venture will combine Rockwood's titanium dioxide pigments and functional additives business and Kemira's titanium dioxide pigments business.

Proceeds from the term loan will be used to purchase the Rockwood and Kemira assets, and the revolver will be available for working capital.

If the companies are unable to negotiate satisfactory terms of the term loan, they may develop an alternative capital structure, contribute cash to the joint venture, reduce the amount of debt incurred by the joint venture and/or revise the ownership structure of the joint venture.

At close, Rockwood expects to own about 61% of the joint venture and Kemira will own the remaining portion.

It is estimated that, on a pro forma basis, the joint venture would have had pro forma revenues of about €556 million for the year ended Dec. 31, 2007, as if the transaction had occurred on Jan. 1, 2007.

The formation of the joint venture is expected to be completed in the third quarter, subject to regulatory approval.

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