Georgia Gulf expected to launch bonds totaling $750 million shortly after Labor Day

By Paul A. Harris

St. Louis, Aug. 17 - Georgia Gulf Corp. is expected to launch a total of $750 million in high-yield bonds shortly after Labor Day to help fund its acquisition of Royal Group Technologies Ltd., according to market sources.

The acquisition has been valued at about $1.6 billion.

The bond deal is expected to include $500 million of senior unsecured notes and $250 million of senior subordinated notes.

Merrill Lynch is expected to lead the deal in a syndicate that will also include Banc of America Securities LLC and Lehman Brothers.

Toronto-based Royal Group Technologies is a producer of home improvement and building products.

Atlanta-based Georgia Gulf is a manufacturer and marketer of two integrated product lines, chlorovinyls and aromatics.

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