ANGUS buyout backed with $795m loan and bond financing-Reuters

(Reuters) – US-based private equity firm Golden Gate Capital will back its acquisition of US-based ANGUS Chemical Company with $795 million of debt financing, banking sources said on Tuesday.

Golden Gate Capital agreed to buy ANGUS from Dow Chemical Company in November for $1.215 billion.

JP Morgan is leading the financing which comprises a $355 million term loan and a $150 million, euro-denominated term loan, as well as $255 million of unsecured notes. There is also a $65 million revolver, the sources said.

Leveraged on the deal is 4.2 times through the senior and 6 times in total, the sources said.

The loans launched for syndication on Jan. 5 and a bank meeting to showcase the deal is due to take place on Jan. 8.

Commitments on the loans are due Jan. 22, around the time the bonds are expected to launch, the sources said.
Golden Gate Capital declined to comment.

ANGUS manufactures and distributes nitroalkanes, which are used in products such as paints and metalworking fluids.