Celanese LBO Hits Market

Deutsche Bank and Morgan Stanley last week launched syndication of a E1 billion credit backing The Blackstone Group's E3.1 billion acquisition of German chemical company Celanese.

  • 14 May 2004
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Deutsche Bank and Morgan Stanley last week launched syndication of a E1 billion credit backing The Blackstone Group's E3.1 billion acquisition of German chemical company Celanese. Buysiders said any concerns typically associated with foreign credits will likely be overcome by the deal's structure. "It's a global player, foreign entity--that may cause people some concern," one investor said. "But I think the total acquisition price is a very good price and the loan side is structured well. I could see them changing the capital structure to increase the bank loan leverage if the deal goes very well."

The deal comprises a E312.5 million multicurrency revolver; $223 million synthetic letter of credit facility; and $595 million "B" loan, which may have a Euro carve out. The revolver and letter of credit facility went out at LIBOR plus 2 1/2%, while the "B" loan is being sold at LIBOR plus 2 3/4%.

Total leverage is 4.4 times. "The senior secured leverage is pretty reasonable--only one turn. It's pretty safe from that standpoint," a loan investor noted. "This one is fairly reasonably levered compared to its peers," another buysider noted. "That is what is appealing to us."

The deal is said to be going well and investors don't seem concerned about the overseas credit because they get the guarantees and collateral of the U.S. domestic subsidiary, a banker said. The foreign issue is only temporary, she added. After the domination agreement, which restructures the company, goes into effect it becomes a U.S. holding company. The timing of the agreement has not been determined because it depends on regulatory agencies. Bankers at Morgan Stanley and Deutsche Bank either declined comment or did not return calls. Chinh Chu, senior managing director with Blackstone, did not return calls.

  • 14 May 2004

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Share % by Volume
1 Citi 10.72
2 Bank of America Merrill Lynch (BAML) 10.66
3 Credit Suisse 6.45
4 Lloyds Bank 6.42
5 JP Morgan 6.35

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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1 SG Corporate & Investment Banking 1,260.06 2 126,006,164,037.19%
2 Rabobank 1,081.86 1 108,185,922,974.77%
3 Wells Fargo Securities 430.57 1 43,057,020,785.00%
4 SK Securities 192.86 1 19,286,162,593.99%
4 Meritz Financial Group Inc 192.86 1 19,286,162,593.99%