Bloomberg News

Taminco Said to Seek $1.1 Billion Financing for Apollo LBO

January 12, 2012

(Updates with pricing details in third paragraph.)

Jan. 11 (Bloomberg) -- Taminco Group NV, the chemical ingredients manufacturer being bought by Apollo Global Management LLC, is seeking $1.1 billion in financing to support the buyout, according to a person with knowledge of the matter.

The debt includes a $452 million term loan due in seven years, $452 million in high-yield bonds and a $198 million revolving line of credit that matures in five years, said the person, who declined to be identified because the deal is private.

Taminco is proposing to pay about 5.25 percentage points more than the London interbank offered rate on the $452 million bank facility, and the lending benchmark will have a 1.25 percent minimum, according to another person with knowledge of the matter.

The debt may be sold to investors at 97 cents on the dollar, the second person said, reducing proceeds for the borrower and boosting the yield for investors.

The credit line for Ghent, Belgium-based Taminco may be drawn in dollars or euros and the term piece will be covenant- lite, meaning it will have no financial-maintenance requirements, the first person said.

Taminco can borrow an additional $165 million if net first- lien leverage, or debt to earnings before interest, taxes, depreciation and amortization, is 2.75 times or less.

Total leverage will be four times, the first person said.

Jan. 24 Deadline

Isabelle De Scheirder, a spokeswoman for Taminco, didn’t immediately return an e-mail seeking comment. Melissa Mandel Kvitko, a spokeswoman for Apollo, said the company declined to comment.

Citigroup Inc., Credit Suisse Group AG, Nomura Holdings Inc., UBS AG, Deutsche Bank AG and Goldman Sachs Group Inc. are arranging the transaction.

Lenders must let the banks know by 5 p.m. in New York on Jan. 24 whether they will participate in the deal, the first person said.

Apollo is providing $543 million of equity for the transaction, said the person. The New York-based private-equity firm agreed to buy Taminco for about 1.1 billion euros ($1.43 billion) from CVC Capital Partners Ltd.

--With assistance from Mike Amato in New York. Editors: Chapin Wright, John Parry

To contact the reporter on this story: Krista Giovacco in New York at kgiovacco1@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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