Gibraltar Acquisition plans new debt for W.R. Grace purchase

By Sara Rosenberg

New York, April 26 – Gibraltar Acquisition Holdings LLC, a wholly owned subsidiary of Standard Industries Holdings Inc., has received a commitment for up to $3.455 billion of debt financing to help fund its acquisition of W.R. Grace & Co., according to an 8-K filed with the Securities and Exchange Commission on Monday.

JPMorgan, BNP Paribas, Citigroup and Deutsche Bank provided the debt commitment.

In addition, Standard Industries Holdings has committed to capitalize Gibraltar at the closing of the transaction with an aggregate equity contribution equal to $3.516 billion.

The equity commitment will be supported by up to $2.5 billion in proceeds from a secured term loan and available cash of Standard Industries Holdings’ subsidiary, Standard Industries Inc.

Under the agreement, W.R Grace is being bought for $70.00 per share in cash. The transaction is valued at about $7 billion.

Closing is expected in the fourth quarter, subject to customary conditions, including approval by W.R. Grace shareholders and the receipt of regulatory approvals.

W.R. Grace will operate as a stand-alone company within the portfolio of Standard Industries Holdings.

Standard Industries is a New York-based industrial company. W.R. Grace is a Columbia, Md.-based specialty chemical company.

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