(Reuters) – Two banks that were to finance the now-collapsed $6.5 billion buyout of chemicals firm Huntsman Co. provided funding to the buyer, Hexion Specialty Chemicals, to cover payment of a $325 million deal breakup fee, Hexion said on Friday.
Huntsman said it terminated its agreement to be bought by Apollo Management’s Hexion unit and settled litigation against the private equity firm for $1 billion.
Under the settlement, it was agreed that Huntsman will receive a $325 million break-up fee. Hexion said it had commitments from Credit Suisse AG and Deutsche Bank AG to fund the termination fee.
Credit Suisse and Deutsche Bank gave Hexion LLC funds to fully cover payment of the $325 million fee. It is a six-year loan to Hexion, the company said. (Reporting by Megan Davies)